Worldwide recruitment firm experiences a doubling of losses, despite revenue surpassing the £2 billion mark
The UK's recruitment market is currently experiencing a downturn, with hiring activity and vacancies declining across sectors. This trend is reflected in the financial performance and market trends of key recruitment firms such as NES Fircroft, Robert Walters, Hays, PageGroup, and online platforms like Adzuna.
According to Neil Carberry, the CEO of the Recruitment and Employment Confederation (REC), the increase in London job postings is a positive "leading indicator" for trends improving across the country. However, the broader picture suggests a different story.
Recruitment activity is contracting across sectors, with permanent placements declining at the fastest rate in nearly two years and temporary billings also decreasing significantly. The retail, secretarial/clerical, and hotel/catering sectors have seen the steepest reductions in vacancies.
UK-wide vacancies are at their lowest recorded level in four years, falling for 36 to 37 consecutive quarters. For instance, vacancies dropped by 56,000 in Q2 2025 and by another 44,000 in the following quarter.
The abundance of job seekers is also a notable trend, with the availability of candidates expanding at the fastest pace since late 2020. This reflects both higher unemployment and possibly more cautious hiring by employers.
Salary growth has slowed considerably in both permanent and temporary roles, indicating weaker wage pressure amid reduced demand for workers.
NES Fircroft, a major UK-headquartered global recruiter, posted increased revenues ($3bn) but incurred significant losses ($67.7m pre-tax loss for the year ending October 2024), largely due to non-cash expenses and finance costs. This suggests the company is scaling operations but facing profitability challenges in the current market.
Although specific financial data for Robert Walters, Hays, PageGroup, and Adzuna were not available, the market-wide trends of declining vacancies and recruitment activity imply that these companies likely face subdued demand and pressure on earnings.
Broader labour market data shows a steady but slow decline in payrolled employees and a slight uptick in unemployment (4.7% in May-July 2025), consistent with a cautious hiring environment.
Despite these challenges, there were some signs of improvement in June 2024, with a "small burst of hiring" largely driven by significant increases in some sectors, including transport and logistics professionals. London saw an 8.1% increase in job postings during this month.
However, London-listed PageGroup's gross profit fell from £444.1m to £389.3m during the first half of its financial year. Robert Walters reported an operating loss of £7.8m for the first half of its financial year, and its expenses in the year surged from $5.4m to $16.6m.
James Reed, the chairman and CEO of recruitment giant Reed, described the UK jobs market as the worst he has ever seen after 35 consecutive months of decline. Adzuna's turnover fell from £30.7m to £20.5m due to a "turbulent macro-economic environment and reduced recruitment advertising activity".
Hays is forecasting pre-exceptional operating profits of around £45m in 2025, significantly below analyst consensus of £56.4m. The company expects group like-for-like net fees to decline by 9% year-on-year in the fourth quarter.
The UK-headquartered global recruitment giant NES Fircroft posted a pre-tax loss of $67.7m for the 12 months ending October 2024. Jobs website Adzuna reported a pre-tax loss of £276,797 for the 12 months to 30 June 2024, a steep drop from a pre-tax profit of £1.5m in the prior year.
The company was formed in September 2020 through a merger of NES Global Talent and the Fircroft Group. London-listed recruiter Hays downgraded its annual profit guidance and expects "challenging market conditions to persist into 2026".
In summary, the UK's recruitment market in mid-2025 is marked by contracting hiring, abundant candidate supply, sluggish wage growth, and financial strain on recruitment firms like NES Fircroft. These trends reflect wider economic concerns and cautious employer behavior.
- The challenging market conditions and slow economic growth are impacting the finance of various recruitment firms, with NES Fircroft reporting a pre-tax loss of $67.7m for the year ending October 2024 due to non-cash expenses and finance costs.
- The declining recruitment activity and vacancies in the UK have resulted in increased competition among businesses for a limited pool of skilled workers, leading to a notable expansion in the availability of job seekers.
- Given the contraction in the recruitment market, the government may need to implement measures to stimulate economic growth, such as adjusting taxes and investment in key industries like transport and logistics, to promote job creation and improve the overall financial health of businesses.
