(Adds CFO comments, details, background)
By Esha Vaish
Oct 18 Hiring in London fell sharply after
Britain's vote to leave the European Union and companies are
still cautious about adding to existing staff levels because of
uncertainty over Brexit, recruitment company Hays said
Hays, which places workers in areas such as finance and IT,
reported a 10 percent year-on-year fall in net fees at constant
currencies from the UK and Ireland in the three months to Sept.
30, after a 4 percent fall in the preceding three months.
But the biggest impact was in London, where net fees tumbled
Finance Director Paul Venables said companies had begun to
replace "leavers" since mid-July, but they remained cautious on
incremental spending on new jobs as they drew up contingency
plans for Brexit.
"The referendum result meant that all businesses stopped
hiring, very shortly, for a period of time and after that
they've returned to at least replacing leavers," Venables told
"Clients are not looking to increase headcount and they're
being cautious on any incremental investments," he said.
Surveys this month have suggested companies are wary about
making investments in the aftermath of the June vote.
Hiring for permanent jobs in Britain stabilised following a
step-down in activity immediately after the vote, which Venables
said suggested the market "may well have seen the worst" and
Hays "may well get a gradual improvement" through the rest of
its financial year.
Barclays and UBS said Hays' UK performance was better than
expected. Shares in Hays, which makes just over a quarter of its
net fees from the UK and Ireland, were up 2.8 percent at 139.2
pence at 1108 GMT.
Rival PageGroup has said confidence among employers
was "fragile" following the vote, with finance firms
particularly holding off from hiring, while smaller rival Robert
Walters said hiring levels in London investment banking
had picked up recently.
Following the vote there has been a lot of speculation that
banks in London might start moving some operations to
continental Europe to ensure continued access to the EU market.
Venables said Hays had not seen any large outflow of jobs
from the UK at the moment.
Hays posted a 3 percent rise in quarterly global net fees,
citing strong growth in continental Europe.
(Reporting by Esha Vaish in Bengaluru; Editing by Mark Potter
and Jane Merriman)