Recruiter SThree reveals drop in fees amid weak UK jobs market

Recruiter SThree has revealed a slump in fees over the past year as it was knocked by the weak UK labour market.

Nevertheless, shares in the company, which specialises in hiring for science, tech, engineering and mathematics roles, moved higher amid improvements in the US.

The London-listed firm said it has yet to see a “widespread market recovery” as broader economic pressures continue to weigh on the global labour market.

SThree reported that group net fees slipped by 12% to £322.7 million for the year to November, compared with a year earlier.

It highlighted that the decline slowed down in the latest quarter, with a 8% fall compared with a 12% drop in the third quarter of the financial year.

The group has benefited from a recovery in the US, where fees rose by 4% to £83.2 million for the year.

However, the UK was the weakest of the group’s key markets, with fees from the region tumbling by 27% to £27.7 million.

SThree also told shareholders that it cut its headcount by 18% over the past year, saying the reduction was due to “natural churn” and operational efficiencies.

Timo Lehne, chief executive, said: “We are pleased to report a positive close to full-year 2025, which is expected to be in line with guidance.

“As anticipated, we have not yet seen a widespread market recovery, however we have exited the year with a period of improving new placement activity, complemented by continued resilient extensions.

“Whilst navigating a challenging macroeconomic backdrop, we have focused this year on what is within our control: positioning the business to capture emerging pockets of growth – achieving growth in two of our top five countries – sharpening our proposition, and maintaining a disciplined focus on operational efficiency.”

Shares were 8% higher on Tuesday morning.