Hays suffers drop in UK profits as hirings squeeze tightens – Business News – Yorkshire Post

When I read the title I was thinking Oh No, not again but unfortunately it seems the info in the article is incomplete to show there is a hiring squeeze.

Lets look at the figures.
– 35% decrease in public sector work
– 19% growth in private sector work

Private sector work represents 78% of fees. This means Public sector represents 22% of fees.

250 000 candidates placed

If there is 19% growth in the sector where 78% of your fees come from but a 35% in the sector 22% of your fees come from then in net terms that looks about break even.

Lets assume we don’t make a distinction between temp and permanent jobs (I know its a big one but stick with me)

This would give a total of 250000 jobs equalling 55000 public sector jobs and 195000 private sector jobs.

If you increase one with 35% and decrease the other one with 19% voila a net increase in jobs. Hardly a squeeze.

But unfortunately the relationship between fees and number of jobs in each sector is not given so the information needed to support the “shocking” headline is absent, so I guess the title is still valid but without proof. The job market has been battered by bad news but it’s time to read behind the titles!

Hays suffers drop in UK profits as hirings squeeze tightens – Business News – Yorkshire Post

Career Coaching @ careerjourney.co.uk

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