Why is Employer Hiring Confidence Globally Uncertain?

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Manpower Employment Outlook Survey Reveals Uncertainty Still Weighs on Employer Hiring Confidence Across the Globe in 2013Q2

Employers in More than 75% of Labor Markets Plan to Hire, but
Outlooks Soften from One Year Ago;
Signs of Stabilization in Europe

MILWAUKEE, March 12, 2013 /PRNewswire/ — Global economic challenges and uncertainty will continue to contribute to subdued hiring during the second quarter of 2013, according to the latest Manpower Employment Outlook
Survey released today by ManpowerGroup (NYSE: MAN).

ManpowerGroup’s research suggests that employers are seeking signs of a robust global economy before labor markets are likely to achieve sustainable traction.

This quarter’s research revelations

    Positive Hiring Plans in More Than Three Quarters of Labor Markets
    Employers in 32 of the 42 countries and territories surveyed expect to add to their workforces in varying degrees in the second quarter, compared to 29 countries and territories in the first quarter.

    Hiring optimism strengthens quarter-over-quarter in 21 countries and territories but declines in 15.

    Hiring Weaker Than One Year Ago
    Employers in 25 countries and territories report weaker hiring forecasts compared to this time last year, with outlooks improving from 12 months ago in 15.

    Brazil, Taiwan, Turkey and India Again Lead the Way, Weakest Outlooks in Europe
    Employers in Brazil, Taiwan, Turkey, India and Panama report the strongest second-quarter hiring plans globally.

    Those in Italy, Spain, Greece and the Netherlands report the weakest Net Employment Outlooks, with outlooks from Italy and Spain matching the weakest employer forecasts ever reported there.

    Employers in Europe in Wait-and-See Mode
    While the least optimistic second-quarter forecasts prevail across the Europe, Middle East and Africa (EMEA) region, where employers in nine of 24 countries report negative outlooks, there is a clear improvement from three months ago when negative hiring plans were reported in 13 countries.

    U.S. Employers Report Steady Hiring Pace
    Hiring intentions in the U.S. remain relatively stable in both quarter-over-quarter and year-over-year comparisons.

    “Employers continue to be troubled by the current global economic environment, where the only certainty is uncertainty, meaning companies remain cautious when it comes to adding to their workforces,” said Jeffrey A. Joerres, ManpowerGroup Chairman and CEO


    “Although the tea leaves are not providing any clear direction at this stage, there are positive signs from Europe which suggest some stabilization.

    “There is unexpected and welcome news from France given the current environment — manufacturing employers indicate they will hire between 80,000 and 100,000 people this year and this momentum is projected to continue through 2020.

    “This corresponds with our survey, with manufacturing sector employers reporting their strongest hiring intentions since 2008.

    “Despite quarter-over-quarter and year-over-year declines in most industry sectors and regions in Germany, the hiring outlook remains positive and the labor market is relatively resilient in the face of those headwinds.

    “However, employers are less willing to ignore developments elsewhere in the eurozone.

    “Even in Greece — where the labor market has been persistently weak — the hiring forecast is the most optimistic in three years and hiring plans improve considerably from last year at this time in the majority of industry sectors surveyed.”

    In the Americas, employers in all 10 countries surveyed report positive hiring intentions for the coming quarter, with hiring plans strengthening in four but declining in five in a quarter-over-quarter comparison.
    When compared year-over-year, Net Employment Outlooks improve in four countries and decline in six.

    The strongest regional outlook is in Brazil, while the weakest are reported in Costa Rica and the U.S.

    “There is a familiar story in the U.S. and that is of employers taking a measured and positive approach to hiring.

    “Companies remain cautious about making any drastic adjustments to their hiring plans, but the small steps forward indicate a continued trend of improved confidence,” said Jonas Prising, ManpowerGroup President.

    “Brazil’s hiring prospects are considerably improved from the first three months of the year, and the economic growth there goes hand-in-hand with a shortage of highly qualified professionals.

    “The Brazilian government is addressing this by increasing the import of foreign talent to meet demand in a tight labor market where the challenge is further compounded by the ramping up of preparations for the next year’s soccer World Cup and the 2016 Olympics.”

    Employers in each of the eight Asia Pacific countries and territories surveyed report positive second-quarter hiring intentions.

    Net Employment Outlooks strengthen in four of the eight countries and territories quarter-over-quarter.

    Year-over-year, outlooks weaken in five of eight countries and territories.

    Regionally, the strongest outlook is in Taiwan.

    The weakest is reported by employers in Australia, where employer confidence has been eroding steadily for the past two years and the country’s Net Employment Outlook stands at its weakest level since the third quarter of 2009.

    “Chinese employers predict an upbeat hiring pace as employer confidence seems to be rebounding in all sectors and regions when compared to last quarter,” said Darryl Green, ManpowerGroup President.

    “The country is encouraging and increasing both private and public investment to bolster the country’s economic development.

    “For example, the Chinese government plans to invest 650 billion yuan in railway construction with 5,200km of additional rail scheduled to go into operation this year.

    “Meanwhile, the data from India shows last quarter’s recovery from the sharp decline of the fourth quarter in 2012 is continuing.

    “However, companies continue to struggle to close skills gaps, and the challenge is compounded by recent reports that more than 90 percent of recent engineering graduates are ill prepared to enter the workforce — either because of a lack of hard or soft skills.”

    New Outlook Survey Tool

    The Manpower Employment Outlook Survey Explorer tool, a new interactive way to examine and compare ManpowerGroup’s data, can be viewed at http://www.manpowergroupsolutions.com/DataExplorer/.

    The tool includes at-a-glance maps and graphs that plot historical and current global hiring trends.

    The next Manpower Employment Outlook Survey will be released on 11 June 2013 to report hiring expectations for the third quarter of 2013.


    About the Survey

    The Manpower Employment Outlook Survey is the longest-running, most extensive, forward-looking employment survey in the world, commencing in 1962 and now polling over 66,000 employers in 42 countries and territories to measure their intentions to increase or decrease the number of employees in their workforce during the next quarter.

    The survey serves as a bellwether of labor market trends and activities and is regularly used to inform the Bank of England’s Inflation Reports, as well as a regular data source for the European Commission, informing its EU Employment Situation and Social Outlook report the Monthly Monitor.

    ManpowerGroup’s independent survey data is also sourced by financial analysts and economists around the world to help determine the health of labor markets.

    What Are Your Thoughts??

      Given your region, this could be a good news/bad news message. What expectations are you having for your hiring in the coming quarter?

      Given the questionable hiring confidence, how will moral be affected, especially if this means more weight to carry?

      Where is your company focusing in an attempt to get around this?

    Please share your thoughts with our audience in the comments section below!


    More on This Topic

    Well-researched and with practical applications, this manual shows the importance of understanding an organization’s business strategy, goals, and competitive environment to identify what talents the firm will need. The combination of strategic forecasting and labor-market planning outlined in this resource shows how to increase an organization’s ability to improve its capabilities, reduce its costs, and survive any economic environment. Ensuring that the right people are in place at the right time, these practices help employers be proactive and smart about hiring decisions. (Publication Date: June 1, 2012)
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    About the Authors of the Book

    Jean M. Phillips and Stanley M. Gully have their doctorates in human resources and are professors of human resource management at Rutgers University. They are the coauthors of Strategic Staffing. They both live in Annandale, New Jersey.

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    About ManpowerGroup

    ManpowerGroup™ (NYSE: MAN), the world leader in innovative workforce solutions, creates and delivers high-impact solutions that enable our clients to achieve their business goals and enhance their competitiveness. With over 60 years of experience, our $21 billion company creates unique time to value through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions cover an entire range of talent-driven needs from recruitment and assessment, training and development, and career management, to outsourcing and workforce consulting. ManpowerGroup maintains the world’s largest and industry-leading network of 3,500 offices in 80 countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-sized enterprises, local, multinational and global companies. By connecting our deep understanding of human potential to the ambitions of clients, ManpowerGroup helps the organizations and individuals we serve achieve more than they imagined – because their success leads to our success. And by creating these powerful connections, we create power that drives organizations forward, accelerates personal success and builds more sustainable communities. We help power the world of work. The ManpowerGroup suite of solutions is offered through ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®. Learn more about how ManpowerGroup can help you win in the Human Age at www.manpowergroup.com.

    ManpowerGroup is the most trusted brand in the industry, and was once again the only company in our industry to be named to the Ethisphere Institute’s 2012 World’s Most Ethical Companies list for our proven commitment to ethical business practices, including an outstanding commitment to ethical leadership, compliance practices and corporate social responsibility.

    In January 2011, at the World Economic Forum Annual Meeting in Davos, Switzerland, ManpowerGroup announced the world has entered the Human Age, where talent has replaced capital as the key competitive differentiator. This concept of talentism as the new capitalism continues to resonate and was echoed as a core theme of the 2012 Annual Meeting of the World Economic Forum in Davos. Learn more about this new age at www.manpowergroup.com/humanage.

    Gain access to ManpowerGroup’s extensive thought leadership papers, annual Talent Shortage surveys and the Manpower Employment Outlook Survey, one of the most trusted indices of employment activity in the world, via the ManpowerGroup World of Work Insight iPad application. This thought leadership app explores the challenges faced by employers navigating the changing world of work and provides in-depth commentary, analysis, insight and advice on strategies for success.

    Follow ManpowerGroup Chairman and CEO Jeff Joerres on Twitter: twitter.com/manpowergroupjj. Joerres is one of only 20 Fortune 500 CEOs who leverages a Twitter account to get his message out.

    SOURCE ManpowerGroup


    Britt Zarling, +1-414-906-7272, Britt.zarling@manpowergroup.com,

    Mark Jelfs, +1-414-906-6675, mark.jelfs@manpowergroup.com

    Web Site : http://www.manpowergroup.com

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