Recruitment firm Hays sees £3m loss in UK division

Chief executive Alistair Cox said the recruitment squeeze in the banking industry would persist for “some time” and had spread beyond the UK to markets such as Hong Kong as major players restructure their operations.

The recruiter’s results come as the banking industry faces pressure from all sides, as it battles with volatile markets, weak consumer confidence, increased regulatory heat and criticism over pay.

The slowdown, which was behind a 1 per cent drop in private sector fees, which make up 78 per cent of UK revenues, prompted Hays to close 12 UK outlets, cutting its total headcount by 4 per cent, including a 2 per cent drop in the number of consultants to 2,071.

However, the wider group was supported by a strong performance overseas, particularly in Germany, leading to a 21 per cent increase in overall operating profit to £63.1m.