Hays Faces Profit Slump Amid Hiring Delays and Market Uncertainty

Recruitment giant Hays announced on Thursday a warning of profit losses larger than expected due to a reduction in new job openings and persistent delays in hiring. This disheartening forecast has led to a sharp decline in its shares along with those of its European counterparts.

Hays has predicted an over 57% decline in profit for the fiscal year ending in June, with expected earnings dropping to around 45 million pounds ($60.3 million). This is significantly lower than analysts' forecasts. The economic uncertainty heightened by U.S. President Trump's recent tariffs on trade partners like the European Union has further complicated hiring decisions.

The company's CFO, James Hilton, noted a contraction in the permanent hiring sector, especially in major markets like Germany and the UK. Temporary recruitment continues to hold firm broadly, but the German market remains an exception, burdened by a troubled auto sector amidst foreign competition pressures.

(With inputs from agencies.)