Key facts
- Specialist tech recruiter SThree reported a 19% slump in net fees across its UK operations.
- UK takings fell to £11.6m in the first half of the year, down from £14.2m year-on-year.
- Germany and the Netherlands also saw significant drops in net fees, by 14% and 24% respectively.
- The US market bucked the trend with a 12% increase in fees, contributing to a 7% overall decline in group net fees.
- Japan was a standout performer with 36% fee growth.
Specialist tech recruiter SThree has reported a significant slump in hiring across its UK and European operations, reflecting a broader cooling of the jobs market. The company's net fees in the UK dropped by 19%, with total takings falling to £11.6m in the first half of the year, down from £14.2m in the same period last year.
This downturn in the UK is attributed to a tough economic backdrop, with companies pausing hiring and reducing headcounts due to cost pressures. BDO's employment index hitting a 15-year low in March underscores this caution.
Across continental Europe, SThree's performance mirrored the UK trend. Germany saw a 14% decrease in net fees, and the Netherlands experienced a 24% drop. Weak demand for technology roles in Germany and for both engineering and technology roles in the Netherlands were cited as reasons.
However, strong demand in the United States provided some offset, with US fees growing 12% to nearly £42m. Japan also emerged as a standout performer, with fees growing 36% to £6.7m.
Overall, group net fees declined by 7%. SThree's chief executive, Timo Lehne, noted that trading momentum had improved by the second quarter, though losses in the UK worsened.