Manpower Group has released its fourth quarter hiring outlook, which is largely positive. Global hiring plans are rebounding, although the talent shortage remains severe. Employers in more than 43 countries participated in the survey; all countries reporting stronger hiring plans when compared to last year. Hiring activity has increased much more rapidly than it did following the previous economic downturn.
Once again, employers in the USA report the strongest hiring prospects. In total, there are 15 countries reporting their strongest hiring plans since the Manpower Survey began in 1962. Those countries are Austria, Belgium, Canada, Finland, France, Germany, Ireland, Italy, Mexico, Netherlands, Norway, Spain, Sweden, United Kingdom and the USA.
Global hiring plans have the strongest year-over-year improvements in Netherlands, India, and United Kingdom. On a quarterly basis, the biggest improvements are in India, Canada, Netherlands, and Mexico.
EMEA employers are expecting a hiring boost with payroll gains expected in all 26 countries that participated in the survey. Activity is particularly strong in the UK and France, with all seven industry sectors in each country expecting their most active hiring since 2008 and 2003, respectively. As US employers scramble to bring back workers, hiring activity is at its highest level in 10 years, across all industry sectors. In India, hiring plans have increased by 37% since the previous quarter and 40% year-over-year.
However, the robust demand for employees may be tempered by the global talent shortage. More than two-thirds of employers report they cannot find the skills or people they need. This is a 15-year high for the second consecutive quarter. The lack of qualified candidates is especially severe in India, Romania, Singapore, Bulgaria, France, Japan, Belgium, Germany, South Africa, Italy, and Spain. Across industry sectors, 80% of employers with hiring needs in manufacturing and finance are struggling to find people.
Employers need to use a variety of tactics to entice candidates to their organizations – these include providing additional skills training, higher wages/benefits, more flexibility regarding work location, and sign-on bonuses. Other strategies may include reducing or eliminating skills/experience requirements, eliminating background checks and drug screens, or offering more non-financial benefits. Internally, employers are beginning to speed up their hiring processes so that good candidates aren’t lost to other opportunities.
This market again bodes well for third-party recruiters who may have better access to hard-to-find candidates, along with the skills needed to successfully persuade those candidates to consider a career change. We are certainly seeing an increase in split placements among our members, along with bigger salaries and higher fees.