Hays has reported a further erosion of margins, especially in its temporary business, but says its performance for the year continues to meet expectations.

In a trading update it said: “The group is expecting strong net fee growth in the permanent market of approximately 27% and modest net fee growth of approximately 5% in the temporary market in the first half year, versus the same period last year.”

Hays said it expected first-half headline net fees to be about 15% above the same period last year.