**The big picture:** Global recruitment firm Hays reported a 3% decline in net fees for Q1, marking its 14th consecutive quarterly drop, primarily due to a 7% fall in permanent hiring fees. **Why it matters:** This signals ongoing fragility in the global job market, particularly in permanent placements, impacting staffing firm revenues and highlighting employer caution. **Between the lines:** - Permanent hiring fell 7% globally, with significant weakness in Northern Europe and Ireland. - Hays is reviewing operations in several countries, including Belgium, Brazil, and Singapore, and has cut staff. - The company is focusing on specialized positions less impacted by AI to navigate challenging economic conditions. **Staffing & HR impact:** The sustained decline in permanent hiring directly impacts staffing firm gross margins and recruiter productivity, necessitating strategic adjustments like staff reductions and market exits. This trend suggests a shift towards more flexible or specialized talent solutions. **The bottom line:** Hays' performance underscores a cautious employer sentiment globally, with a continued preference for temporary solutions over permanent hires.