The global hiring market is facing a slowdown, with recruiter Hays revealing a noteworthy drop in fees in the most recent quarter.

The firm now predicts profits will hit the bottom range of prior expectations. This follows similarly downbeat reports from its competitors PageGroup and Robert Walters earlier in the week, as recruitment agencies face setbacks due to companies pulling back on recruitment amid rising costs and economic unpredictability.

On Wednesday, Hays disclosed to its investors that its net fees diminished by 15% in the quarter leading up to December 31, with a notable decrease in demand for permanent staff—permanent roles dipped by 21%, while temporary placements fell by 10%.

In the UK, net fees plunged by 14%, and in Germany, one of its crucial markets, there was a sharper decline of 17%. Due to these shifts, Hays forecasted an operating profit of around £25m for the half-year, situated at the "lower end" of what had been previously suggested.

The company has also signalled subdued market conditions going forward, although it remains too soon to confirm if they're bracing for a "sustained market slowdown". To adjust, Hays has trimmed its workforce by 2% during the quarter, with the UK experiencing the brunt of these reductions.

Chief executive Dirk Hahn commented on the resilience of his company, stating: "We are structurally improving Hays despite challenging markets, and remain resolutely focused on driving operational rigour through business line prioritisation, resource allocation, and efficiency initiatives.

"Temp & Contracting was sequentially stable through the quarter and our New Year ‘return to work’ will again be important so we are closely monitoring activity levels. Permanent net fees slowed but it is too early to say if recent weakness reflects a more sustained market slowdown or shorter-term deferrals of client and candidate decision-making."