Hays says hiring in London slumped after Brexit vote

October 18, 2016 2:54 AM EDT

People look at job listings at the Careers and Jobs Live careers fair at the ExCeL centre in London April 19, 2009. REUTERS/Luke MacGregor


Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

(Reuters) - International recruitment firm Hays said hiring in London fell sharply as property and construction clients were reluctant to take on new staff after Britain's vote to leave the European Union.

The company, which places workers in areas such as finance, and IT, reported a sharper fall in first-quarter UK and Ireland profit than that seen in the preceding three month.

So far the biggest impact was in London, where hiring activity in fell sharply, sending profit in the region 17 percent lower on a constant currency basis over the three months ended Sept. 30.

Permanent UK hiring activity had stabilized following a step-down in activity immediately after Brexit, Hays said, adding that its temporary placement business remained challenging due to tough conditions in public sector markets and the construction and property industry.

Hays said first-quarter gross profit for the United Kingdom and Ireland fell 10 percent in constant currency terms in the quarter, a steeper slide than the fall of 4 percent seen in the preceding quarter.

Although British consumers have taken "Brexit" in their stride, helping the economy show some resilience, surveys released earlier this month have suggested firms are cautious about investing, stoking fears unemployment could rise.

(Reporting by Esha Vaish in Bengaluru, editing by Louise Heavens)



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Reuters

Add Your Comment