Recruitment specialist Hays has warned that the private sector cannot absorb public sector workers who lose their jobs. The company's chief executive, Alistair Cox, made the warning as the firm posted its latest set of financial figures, which revealed an 80% drop in profits. ‘It's impossible to imagine the private sector is going to have the confidence to create enough jobs to absorb these people, and the private sector is the only place these people can go,' said Mr Cox. Mr Cox said the UK private sector job market ‘continues to improve', but the company results showed that the public sector market was not as successful. The company had seen a 19% drop in fees from the public sector in the last 12 months, although revenue from its healthcare had risen by 29%. Across the UK, the firm reported a 23% drop in net fees from the temporary sector and by 32% in the permanent placement business. The company has won several new contracts in the last 12 months, including ones with the Audit Commission – facing abolition – and Northamptonshire CC.