Hays Director Sees Further Fallout From UK Public Sector Cuts

U.K. recruiter Hays PLC (HAS.LN) expects a further fallout from spending cuts in the U.K. public sector, and is waiting for the government to announce how many jobs will go in its Autumn spending review.

Finance Director Paul Venables said on a conference call it won't be easy to transfer public sector employees into the private sector, as they lack a natural skill set and the working pace is too fast in the private sector.

"It's not an easy transfer so it will take a couple of years," he said.

The company saw a fallout in the public sector about 15 months ago, when authorities made a decision not to replace people who left and those who had secure positions wouldn't move jobs, but Venables said this accelerated three months ago.

Hays benefits from people changing jobs but doesn't expect to find masses of new clients once public sector jobs are cut.

However, Venables said the private sector in the U.K. is recovering and Hays' international divisions are performing strongly. Hays plans to expand its U.S. business through a pharmaceutical subsidiary, and to enter Mexico this year.

-By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; anita.likus@dowjones.com

Hays (PK) (USOTC:HAYPY)
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