HIRING OUTLOOKS IMPROVE, TALENT SHORTAGES ESCALATE
Prague, 8 June 2021 – Job seekers in the Czech Republic can expect limited hiring opportunities in the forthcoming quarter, according to employers who report a seasonally adjusted Net Employment Outlook of +4%. Hiring intentions weaken by 3 percentage points when compared with the previous quarter, but improve by 11 percentage points in comparison with 3Q 2020, when COVID-19 first had an impact on hiring plans.
“Rising unemployment doesn’t mean that hiring is any easier today. Laying off workers in food services, tertiary sector and administration didn’t bring around new candidates for industrial sectors, healthcare or education. Companies’ demand is less and less aligned with the supply, i.e., available candidates, due to the freezing of the labour market during the pandemic. People don’t change their job unless they have to, because job change means uncertainty and risk. According to ManpowerGroup labour market index companies in all sectors have started hiring again. However, they also say it is now more difficult to fill in vacancies than before the pandemic. The solution of this complex situation on the new labour market is for companies to focus even more on change and upskilling of their employees, to use alternative and flexible work forms and to better care for their employees,” said Jaroslava Rezlerová, Managing Director of ManpowerGroup Czech Republic.
Industry sector comparisons
Workforce gains are forecast for five of seven Czech industry sectors during the third quarter of 2021. In a comparison with the prior quarter, Outlooks weaken in four sectors while improving in two. When compared with this time one year ago, hiring sentiment strengthens in six of the seven sectors.
Reporting their strongest hiring intentions in two years, Manufacturing sector employers (+15%) anticipate the strongest sector labor market in 3Q 2021. Hiring plans in the sector remain relatively stable when compared with the previous quarter and improve by 19 percentage points year-over-year. Hiring sentiment is also stronger than the national Outlook in the Construction sector, where the Outlook of +13 declines by 4 percentage points quarter-over-quarter, but improves by 14 percentage points year-over-year. Finance & Business Services sector employers report modest hiring intentions with an Outlook of +6%, dipping by 4 percentage points when compared with the previous quarter, but improving by 14 percentage points in comparison with last year at this time. The weakest sector Outlook of -1% is reported by Other Production sector employers, remaining relatively stable quarter-over-quarter, and unchanged in comparison with the third quarter of 2020.
An increase in staffing levels is expected in all three Czech regions during the next three months. Hiring prospects weaken in all three regions when compared with the previous quarter, but strengthen in all three when compared with this time one year ago.
The strongest regional hiring pace is anticipated in Prague (+7%), remaining relatively stable quarter-over-quarter and improving by 24 percentage points in comparison with the same period last year. Employers in Bohemia report the weakest regional Outlook of +5%, remaining relatively stable in comparison with 2Q 2021, and improving by 7 percentage points year-over-year.
Organization Size Comparisons
Employers in three of the four organization size categories expect to grow staffing levels during 3Q 2021, most notably in the Large category (+24%). However, Small employers (-2%) expect to trim payrolls.
Globally, employers in 42 of the 43 countries and territories surveyed expect to grow payrolls during the third quarter of 2021, including all 26 EMEA countries. In a comparison with the second quarter of 2021, employers report stronger hiring plans in 31 of the 43 countries and territories, while Outlooks weaken in eight, with no change reported in four. When compared with this time one year ago – when COVID-19 first had an impact on hiring sentiment – employers in 42 of the 43 countries and territories report improved hiring prospects, with no change in one. In the coming quarter, the strongest labor markets are forecast in the U.S., Taiwan, Australia, Greece, Ireland and Singapore, while the weakest hiring intentions are reported in Hong Kong, Argentina, Panama and South Africa.
The next ManpowerGroup Employment Outlook Survey featuring the forecast for the 4Q 2021 period will be published on 14 September 2021.
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), 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®, Right Management® and ManpowerGroup® Solutions – creates substantially more value for candidates and clients across 80 countries and territories and has done so for 70 years. In 2019, ManpowerGroup was named one of Fortune’s Most Admired Companies for the seventeenth year and one of the World’s Most Ethical Companies for the ninth year in 2018, confirming our position as the most trusted and admired brand in the industry. See how ManpowerGroup is powering the future of work: www.manpowergroup.com.
About ManpowerGroup Czech Republic
Through a network of over 35 offices, we provide staff (nearly 12,000) for approximately 1,200 clients. With employment opportunities in the public and private sector, on both a permanent and temporary basis, we make it easy for people to find employment and for companies to find staff with the skills they need. Solutions include permanent and temporary positions, holiday, maternity or sick coverage, through to large workforce transformation and outsourcing contracts.
More information available on www.manpowergroup.cz