Upbeat Hays expects City to make up for public sector woe

Hays, Britain's biggest recruiter, today confidently predicted its UK business will return to growth within six months as more jobs in the City counteract the ailing public sector.

Hays' net fees jumped 21% in the last three months of the year, mainly thanks to growth in Asia and elsewhere in Europe.

In the UK, it earned only 1% more fees in the quarter than the same time in 2009, but finance director Paul Venables said he expected that to accelerate.

"The private sector business is showing a strong rebound with fees up 28% in the quarter," he said.

"It's very strong in the City, accountancy and finance — candidates are confident enough to change jobs and employers are replacing them."

The Big Four accountancy firms were strong sources of business, Venables added, as was legal recruitment.

But while government departments and local councils are still spending money on front-line staff for education and healthcare, hiring of accountants and secretaries is down more than 60% down on its peak, he said. Public sector fees in the last three months of the year slumped 38%.

Venables said: "We expect to hit the bottom in public sector in April or May, and for the whole UK business to return to growth in six months."

Shares dipped 2.4p to 125.5p.