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By Jamil Hussein

Date: Thursday 09 Oct 2008

LONDON (ShareCast) - Recruitment firm Hays saw overall net fee rise in the first quarter but highlighted the downturn in the UK, especially demand for finance, construction and property workers.

Fees in the UK and Ireland, where it generates most of its fees, fell 8% but overall net fee rose 10% and 4% on a like-for-like basis. The difference between the headline and like-for-like growth rate is due to the more favourable Euro and Australian dollar exchange rates.

"Construction & Property had a difficult quarter reflecting tough market conditions in the private sector across all regions,” said the group about the UK business.

“City related activities and Legal were impacted by a significant reduction in demand, whilst Education, Healthcare, Retail and Purchasing continued to perform strongly,” it added.

The group said the demand for permanent placements in the UK continue to fall, though temporary placements remains stable, except in construction & property.

Like-for-like net fees for temporary staff were up 8%, while permanent placements were up just 1%.

Asia Pacific was up 27% and 13% higher on like-for-like basis, while continental Europe and rest of the world rose 54%, up 32% on a like-for-like basis.

“Whilst there is no doubt that many of our markets are getting tougher, the experience of our management team, the flexibility of our cost base, the increased diversification of the group, and the strength of our balance sheet positions us well to deal with these market conditions,” said the group.

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