Hiring Momentum Continues for Q1, Though Signs of Softening Begin
Employers still face a global talent shortage; the Information Technology sector leads the way in Q1 2023 hiring
- While the impact of a potential recession and rising inflation dampen the hiring Outlook quarter-over-quarter and year-over-year, employers continue to look for new talent, reporting a solid Net Employment Outlook of +23% for Q1.
- Strongest hiring intentions among organizations are reported in
Panama(+39%), Costa Rica(+35%), and Canada(+34%); weakest in Hungary(-8%), Poland(-2%), and the Czech Republic(+1%).
- Information Technology (IT) remains the strongest sector (+35%), despite headlines about tech hiring and layoffs.
An indicator of economic and labor market trends, the Net Employment Outlook – calculated by subtracting the percentage of employers who anticipate reductions to staffing levels from those who plan to hire – now stands at +23%, down 6% from last quarter and 14% from this time last year.
The data suggests that the impact of a possible global recession, rising inflation, and higher cost of doing business has begun to play out in labor markets, with the outlook softening although not as steep as the economic forecasts and headlines would suggest. All industries and sectors indicate hiring more people in the first quarter, and all but one region,
"Our report indicates that there are early signs of labor markets softening and hiring intentions moving lower given the economic headwinds we are experiencing," said
- Regionally, the strongest hiring intentions for the next quarter are in
North America(+31%), and Central and South America(+28%).
- Organizations in the IT industry report the most optimistic outlook (+35%), followed by Financials & Real Estate (+28%), and Energy & Utilities (+26%).
- When compared with the previous quarter, hiring intentions improved in 12 countries and territories, and declined in 29.
- Large organizations (250-plus employees) are more than twice as optimistic as micro (less than 10 employees) to hire in the coming quarter with employment outlooks of +29% and +13% respectively.
Global Hiring Plans by Region
- Employers in
Canada(+34%) report a moderate increase (+3%) in their outlooks compared to last quarter, while the U.S.(+29%) and Puerto Rico(+26%) report decreases, -4% and -6% respectively.
Canadaand the U.S.expect hiring to be weaker compared to intentions year over year, declining -3% and -12% respectively.
- Despite what is playing out in the headlines, the
U.S.reports the strongest IT sector globally (+52%).
- Strongest hiring intentions globally for the Consumer Goods & Services sector are found across
North Americain Canada(+28%), Puerto Rico(+23%), and the U.S.(+15%).
- Employers in
Panamareport the strongest outlook (+39%), followed by Costa Rica(+35%) and Guatemala(+32%); hiring confidence is lowest in Argentina(+9%).
- Intentions decline on previous quarter (-3%) but improve based on the same time last year (+21%).
- Uncertainty around the political landscape is weighing on the minds of hiring managers in
Brazil, as the Net Employment Outlook drops 21 points from Q4 but remains positive overall at +27%.
- Strongest hiring intentions globally for the Communication Services and Energy & Utilities sectors are found in
Costa Rica(+52% and +70% respectively), and Industrials & Materials in Panama(+47%).
- Intentions weaken -14% when compared with first quarter 2022, while easing -3% since last quarter.
- Outlooks vary across the region with employers most keen to hire in
Austria(+29%), Turkey(+29%), and Israel(+28%); Most cautious in Hungary(-8%), Poland(-2%), and the Czech Republic(+1%).
- Strongest hiring intentions globally for the Transport, Logistics & Automotive, and Health Care & Life Sciences sectors are found in
Turkey(+51% and +53% respectively). France(+27%), the United Kingdom(+19%), and Germany(+17%) are among the countries continuing to report a positive Net Employment Outlook in Q1. Singapore(+33%), Australia(+32%), and India(+32%) report the strongest outlooks.
- Weakest outlooks are reported in
Japan(+8%) and Taiwan(+11%).
- Strongest hiring intentions globally for the Financials & Real Estate sector are found in
To view complete results for the
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing, and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis, and Talent Solutions – creates substantially more value for candidates and clients across more than 75 countries and territories and has done so for over 70 years. We are recognized consistently for our diversity – as a best place to work for Women, Inclusion, Equality, and Disability, and in 2022
View original content to download multimedia:https://www.prnewswire.com/news-releases/hiring-momentum-continues-for-q1-though-signs-of-softening-begin-301714097.html
MEDIA CONTACT: Emma Almond, +1 (414) 544-1489, firstname.lastname@example.org