CZECH EMPLOYERS REPORT LIMITED HIRING INTENTIONS FOR 2Q 2018
Prague, 13th March – ManpowerGroup Czech Republic releases today results of the ManpowerGroup Employment Outlook Survey for the second quarter of 2018.
Czech employers report subdued hiring plans for the second quarter of 2018 with a seasonally adjusted Net Employment Outlook of +1%. The Outlook declines by 3 and 5 percentage points from 1Q 2018 and 2Q 2017, respectively.
“Czech unemployment rate remains the lowest in Europe and GDP growth is one of highest but according to the ManpowerGroup Employment Outlook Survey for the 2nd quarter of 2018 we observe structure shifts in demand for new employees in the Czech economy. Our second-quarter forecast certainly doesn’t suggest that broad-based workforce contractions are in store, but it does suggest that the overall pace of hiring will slow slightly in comparison to the prior quarter and year. There is decrease in hiring intentions in manufacturing, logistics and increase in services. Anyway, overall hiring intentions remain positive for next quarter and good news is that 40 % of large companies plan to increase number of staff. In-demand profiles are now emphasizing specialized skills in IT, engineering, skill trades or non-qualified jobs in manufacturing and logistics. On the other hand, there is an oversupply in middle-class positions in the administration,” said Jaroslava Rezlerová, Managing Director of ManpowerGroup Czech Republic.
Industry sector comparisons
Staffing levels are forecast to decline in six of 10 industry sectors in the next three months, although workforce gains are anticipated in two of three regions. Hiring intentions weaken in seven sectors and two regions both quarter-over-quarter and year-over-year. Restaurants & Hotels sector employers report the most optimistic of the 10 industry sector forecasts with an Outlook of +12%. The Outlook is the strongest since the survey began 10 years ago, improving by 10 and 9 percentage points from 1Q 2018 and 2Q 2017, respectively. With a gloomy Outlook of -11%, Transport, Storage & Communication sector employers anticipate the weakest sector hiring activity. Hiring plans decline by 12 percentage points when compared with the previous quarter and decrease by a steep margin of 27 percentage points year-over-year, resulting in the weakest Outlook in five years.
In a regional comparison, employers in two regions report reserved hiring intentions with Outlooks of +2%. In Prague, the Outlook is 3 percentage points weaker quarter-over-quarter, while remaining unchanged year-over-year. Bohemia employers report declines of 5 and 2 percentage points from 1Q 2018 and 2Q 2017, respectively. The weakest regional forecast is reported in Moravia, where the Outlook of 0% is unchanged in comparison with 1Q 2018 but drops by a considerable 13 percentage points year-over-year.
Organization Size Comparisons
Employers in three of the four organization size categories expect to increase payrolls in 2Q 2018, including Large employers who report a bright Outlook of +37%. Meanwhile, Micro employers anticipate a flat labor market with an Outlook of 0%.
Employers forecast varying levels of job gains in 43 of 44 countries and territories during the April-June time frame, including Croatia where employers, surveyed for the first time, report healthy hiring intentions based on unadjusted survey data. When forecasts are compared with those reported in the first-quarter, hiring intentions improve in 17 countries and territories, decline in 17 and are unchanged in nine. Some upward momentum is detected in the year-over-year comparison with forecasts improving in 25 of 43 countries and territories, declining in 13, and remaining unchanged in five. Among the countries and territories featuring seasonally adjusted data, confidence is strongest in Taiwan, Japan, Hungary and the United States, while the weakest hiring prospects are reported in Italy, the Czech Republic and Switzerland.
The next ManpowerGroup Employment Outlook Survey featuring the forecast for the 3Q 2018 period will be published on 12th June 2018.
About the Survey
The global leader in innovative workforce solutions, ManpowerGroup releases the ManpowerGroup Employment Outlook Survey quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. It is the longest running, most extensive, forward-looking employment survey in the world, polling over 59,000 employers in 44 countries and territories. 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 where labor markets are headed.
ManpowerGroup (NYSE: MAN) is the world’s workforce expert, creating innovative workforce solutions for 70 years. We connect more than 600,000 people to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands – Manpower®, Experis®, Right Management® and ManpowerGroup® Solutions – we help more than 400,000 clients in 80 countries and territories address their critical talent needs, providing comprehensive solutions to resource, manage and develop talent. In 2018, ManpowerGroup was named one of the World’s Most Ethical Companies for the eighth consecutive year and one of Fortune’s Most Admired Companies, confirming our position as the most trusted and admired brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible: www.manpowergroup.com.
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About ManpowerGroup Czech Republic
Through a network of over 35 offices, we provide staff (nearly 12,000) for around 1,200 clients. With employment opportunities in the public and private sector, on both a permanent and temporary basis, we find for our clients 24.000 new employees yearly.
More information available on www.manpowergroup.cz