Public-sector hirings on slide, says recruiter Hays

Recruitment giant Hays today said the number of people it is managing to find jobs for in some parts of the public sector is down 65% from its peak just two years ago.

"We reckon we are seeing the worst conditions right now," said finance director Paul Venables.

"We are the biggest provider of supply teachers, doctors and nurses and that's still good. But in the back office and other areas, revenues are down 65% from their peak in March-April 2009. People who have left the public sector are just not being replaced."

He also said there had been a marked change in City hirings in the last year: "Twelve months ago, every one of our financial instution clients were recruiting across the board.

"Now it is much more surgical with people only being recruited in areas which are really making money like debt origination."

In the past three months, Hays has seen an 18% rise in fees coming from private-sector employers but a 37% drop from the public sector.

One of the strongest areas of growth was construction and property. Venables said: "Those firms like architects and structural engineers laid off a lot of white-collar people during the downturn, and now as projects come back on stream they are having to hire again."

Overall the UK is the only area where Hays fees fell in the latest quarter - by 2%. Continental Europe revenues increased by 35% and those from Asia-Pacific were up by 23% to give total group revenue growth of 16%.

Hays shares today slipped 3p, or 3%, to 1151⁄2p.