Strong UK economy lifts profit at Hays as higher wages aid fees
PROFESSIONAL recruiter Hays saw a 17 per cent increase in its profit in the year ended 30 June compared with the previous 12 months, the company said yesterday.
Pre-tax profit came in at £161.1m despite a £9.4m dent due to unfavourable exchange rates, notably a weaker euro. It saw a 74 per cent surge in the UK, driven by a stronger labour market and higher pay – recruiters fees are linked to the salaries of the workers they place. As such, recruiters’ results are a good barometer of demand for labour and the health of the economy.
“There are more and more skills shortages across areas of industry, and that’s leading to wage inflation,” Hays chief executive Alistair Cox told City PM
“That’s also driving counter offers from employers when workers hand their notice in. These are all signs of confidence in the employer and employee market.”
UK activity levels were strong and broad based, with all regions and most specialisms delivering growth.