Employers Globally Dial Down Hiring Expectations in Q3
- All regions showed a net positive hiring outlook, though hiring plans are weaker year-over-year globally.
North Americacontinues to hold the strongest outlook (+35%), followed by Asia Pacific(+31%), and South and Central America(+29%), with Europe, Middle Eastand Africareporting the weakest (+20%).
- Digital roles continue to drive the most demand globally with businesses in the IT industry reporting the brightest outlook for the third time this year but weakening -7% compared with Q3 2022.
"This data suggests employers are planning more measured hiring for the quarter ahead as they navigate a range of local and macro level challenges from supply constraints to uneven consumer confidence and rising inflation," said ManpowerGroup Chairman and CEO
Used internationally as a bellwether of economic and labor market trends, the NEO is calculated by subtracting the percentage of employers who anticipate reductions in staffing levels from those who plan to hire.
KEY FINDINGS FROM THE Q3 REPORT
- For Q3 the most optimistic hiring outlooks are reported by organizations in
Costa Rica(+43%), the Netherlands(+39%), and Peru(+38%). Employers in Argentina(+6%), Slovakia(+10%), Austria(+11%), and Italy(+11%) report the least optimistic outlooks.
- Among the world's largest economies, respondents in
the United States(+35%), the United Kingdom(+29%), Germany(+28%), and France(+21%) all plan to hire in the third quarter.
- Organizations in the IT sector (39%) report the strongest outlook, followed by Energy & Utilities (34%). The least optimistic hiring plans are found in the Communication Services (22%) and Consumer Goods & Services (22%) industries.
- Year-over-year, employers in 26 countries plan to hire fewer workers, with the NEO declining -4 percentage points. The biggest year-over-year declines are reported in
Brazil(-19%), India(-15%), Argentina(-14%), Finland(-14%), and Ireland(-14%).
Global Hiring Plans by Region
- Both the
U.S.and Canadaexpect hiring to be weaker compared to their forecast year-over-year, with both countries' NEO decreasing -3%.
- Employers across
Puerto Rico(+35%), the U.S.(+35%), and Canada(+34%) report increases in their outlooks compared to last quarter at +9, +5, and +8 percentage points, respectively. Australia(+37%), India(+36%), and China(+35%) report the strongest outlooks.
- Most cautious outlooks were reported by employers in
Japan(+14%) and Taiwan(+15%). Chinareports the strongest outlook globally for Energy & Utilities (61%) while Singaporeremains the leader in Financials & Real Estate (50%).
- When it comes to digital roles,
Australialeads both regionally and globally (+61%).
- Employers in
Costa Ricalead globally and regionally (+43%), followed by Peru(+38%), and Mexico(+36%).
- The weakest labor market is seen by employers in
- This region has the strongest hiring intentions globally for the following sectors:
- Health Care & Life Sciences:
- Communication Services:
- Consumer Goods & Services:
- Outlooks vary across the region with employers optimistic in
the Netherlands(+39%), South Africa(+34%), and the U.K.(+29%).
- Weakest outlooks are in
Slovakia(+10%), Italy(+11%), and Austria(+11%). Franceand Italyreport a weaker outlook compared to Q2, both declining -5%.
To view complete results for the third quarter 2023
*In 2022 Q3, forty countries participated in the survey.
ABOUT THE SURVEY
The methodology used to collect the data for the Employment Outlook has been digitized in 41 markets for the Q3 2023 report. Survey responses were collected in
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding labor demand in certain regions and countries and economic uncertainty. Actual events or results may differ materially from those contained in the forward-looking statements due to risks, uncertainties and assumptions. These factors include those found in the Company's reports filed with the SEC, including the information under the heading "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2022, which information is incorporated herein by reference.
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