(Reuters) - International recruitment firm Hays Plc (L:HAYS) says hiring in Britain weakened significantly shortly after the June 23 referendum vote to leave the European Union, as private sector clients became hesitant to take on new staff.
However, the company, which places workers in areas such as finance, construction and IT, said in reporting annual results on Thursday that it was too early to know the longer-term impact of the Brexit vote, adding that it had seen no evidence that it had affected hiring levels in its many other markets in Europe and the rest of the world.
"Following the EU referendum, there is increased uncertainty in the UK market, but we have seen no evidence of any impact elsewhere," the company said.
"It is too early to tell what the longer term impact may be and as ever, we will monitor activity levels closely," it added.
However, Hays' shares were down 3.6 percent at 125.9 pence at 0823 GMT. Its stock was the third largest percentage loser on London's FTSE midcap index (FTMC) on Thursday.
The UK labour market entered "freefall" after the vote to leave the EU, with the number of permanent jobs placed by recruitment firms in July falling at the fastest pace since May 2009, the Recruitment and Employment Confederation said last month.
In Britain net fees in Hays' private sector business grew 2 percent in constant currency terms across its continuing operations, while it fell 4 percent in its public sector business over the financial year ended June 30, the staffing firm said.
Net fees for the UK & Ireland division, which accounts for more than a third of the group' business, were flat overall, as trading conditions became "more challenging" as the year progressed towards voting on June 23.
Since the end of June Hays said conditions in its UK business that places people in permanent jobs remained tough but no worse, after a fall immediately after the vote.
In its temporary jobs business, activity levels in the UK had remained broadly at pre-referendum levels, it added.
However, helped by strong growth in Germany, France and the United States, Hays' full-year operating profit rose by 13 percent on a like-for-like basis to 181 million pounds ($238 million), broadly in line with its estimate set out in July.
The company, which operates in 33 countries, raised its full-year dividend by 5 percent to 2.90 pence and said it remained on track to make a special payout in 2017.
"At this early stage in our new financial year, we see solid overall net fee growth," the company said.
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