UPDATE 1-Hays says temporary hiring trend solid after 5% growth in quarterly net fees

(Adds CEO comment, background) April 14 (Reuters) - British recruitment firm Hays Plc said on Friday client and candidate activity remained solid in its temporary and contracting segment as corporates navigated broader economic uncertainties and rethought their permanent hiring plans. The global recruitment industry is in the middle of a downturn as sticky inflation and recession fears push companies to cut jobs or freeze hiring, while temporary and contract jobs perform better than permanent roles as employers bide time and try to minimise potential risks. A slew of major U.S.-based technology firms have started or are set for massive layoffs to rein in costs to ride out the economic slowdown. "Our key markets continue to be characterised by acute skill shortages and wage inflation, and we are benefiting from our early management actions to increase fee margins in skill-short markets," CEO Alistair Cox said in a statement. London-based Hays, which largely focuses on white-collar roles and counts technology as its biggest sector, said like-for-like net fees rose 5% to record levels in the three months ended March 31. Fees from the temporary hiring segment grew 11% while those from the permanent division fell 2% as placement volumes declined, driven by reduced client and candidate confidence. (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu)