Hays has shut 15 offices and cut 400 staff and warned that there was little hope of an immediate turnround in the jobs market. The UK’s largest listed recruiter said that demand for temporary and permanent workers “continued to weaken” as companies shed employees and remained cautious about taking on commitments.

“The jobs market is still in orderly decline; sentiment remains fragile,” said Paul Venables, finance director. “A lot of companies have done those headcount reductions and they are not going to go back to hiring permanent staff immediately.”