Recruitment firms like PageGroup, Hays, and Robert Walters face steep challenges as AI disrupts traditional staffing models. Net fees for these companies dropped 5% on average in Q1 2024 compared to last year, following deeper declines in 2024 and 2025. Analysts predict earnings will rebound by a third by 2028, but low valuations—such as PageGroup’s 8x 2028 earnings multiple—signal lingering pessimism.

AI threatens to shrink the workforce by automating candidate sourcing and screening, directly undermining recruiters’ core role. High-end firms like Robert Walters, which focuses on senior roles commanding salaries above national medians, are better positioned to weather this shift, analysts at Investec note.