# Hays swings to loss and warns over shifting global hiring and economic outlook

By Susannah Streeter — 2026-08-20

Following the announcement that recruiter Hays is facing global changes on an “unprecedented scale and pace” due to the shift towards AI adoption, Susannah Streeter, chief investment strategist at Wealth Club, believes that the cooling jobs market is also down to employers being reluctant to commit to permanent hires.

She said: “The cooling jobs market has created a highly difficult environment to navigate for recruiter Hays, given that employers are reluctant to commit to permanent hires and candidates remain cautious about making career moves. Although it’s like wading through mud, Hays is making progress.

“The headline statutory loss of £54.5 million looks ugly, but it masks an underlying improvement in the business. Strip out exceptional charges, and operating profit rose three per cent like-for-like to £48.6 million, slightly ahead of expectations, despite an eight per cent fall in net fees. It appears that Hays is making more money from a smaller pool of recruitment activity, suggesting the restructuring programme is beginning to have an impact. However, the underlying demand picture remains weak, with figures from the ONS out this week showing vacancies have fallen to the lowest level in five years.

“Permanent recruitment, traditionally a higher-margin part of the business, was particularly subdued, with fees down 12 per cent, while temporary and contracting held up better, falling five per cent. With economic uncertainty high and borrowing costs still elevated, employers are opting for flexibility, using contractors and temporary workers rather than locking themselves into additional headcount.”

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