RESERVED HIRING INTENTIONS IN THE FINAL QUARTER OF 2020
Prague, 7 September 2020 – Reporting a seasonally adjusted Net Employment Outlook of +3%, employers forecast slow-paced workforce gains for the Czech Republic during the October to December period. Hiring prospects improve by 10 percentage points quarter-over-quarter, but are 4 percentage points weaker when compared with this time one year ago.
“The situation on the labour market is rather chaotic for employees and especially for employers. As a result of government support to maintain employment, people’s fear of changing jobs, and restrictions on international hiring, the labor market has virtually frozen. It is now even more difficult for employers to find new employees than in the boom period, especially in the manufacturing sector. Although the global decline in car sales poses a threat to the Czech economy and employment, many international companies are moving part of their production to the Czech Republic and are looking for new employees, which are very difficult to find,”said Jaroslava Rezlerová, Managing Director of ManpowerGroup Czech Republic.
37% of employers expect their companies to return to pre COVID-19 hiring levels, in the next 12 months, however attitudes towards a return to normalcy differ between regions. The most pessimistic of regions is EMEA, with almost a third of companies (30%) stating they don’t expect hiring levels to ever return to pre-pandemic levels. This is compared with a more optimistic outlook in APAC (7%) and the Americas (6%). When asked about existing members of the workforce that have been placed on a job retention or furlough scheme, 13% of companies suggest they plan to bring them back full-time, however, a portion 2% indicate these staff will be let go. The survey also highlights some of the lost-lasting transformative effects that the pandemic has had on the workforce, as it asks employers how it expects their ways of working will change. Over a third (38%) of employers globally plan to offer remote work and flexible hours in the post-pandemic workplace, 11% planning to offer 100% remote work to employees. Employers expect to offer more opportunities for their employees to learn and develop new skills (37%) alongside more health and wellbeing benefits (25%) as the demands of workers shift with many hoping to leverage a hybrid-working model.
Industry sector comparisons
Employers in six of seven Czech industry sectors expect job gains in the upcoming quarter, while flat hiring activity is anticipated in the seventh. Outlooks strengthen in six sectors when compared with the previous quarter, but weaken in six in a comparison with the same period in 2019. The strongest sector hiring pace is expected by Restaurants & Hotels sector employers (+6%), improving by a steep margin of 34 percentage points quarter-over-quarter and unchanged when compared with last year at this time. Hiring prospects are also stronger than the national Outlook in the Manufacturing sector (+5%), improving by 8 percentage points quarter-over-quarter, but declining by 2 percentage points year over year. Other Production sector employers report the weakest hiring plans for the coming quarter with an Outlook of 0%, unchanged when compared with the previous quarter and remaining relatively stable in comparison with 4Q 2019.
Workforce gains are anticipated in two of the three regions during the forthcoming quarter, while employers in one region report subdued hiring plans. Hiring sentiment improves in all three regions when compared with the previous quarter, but weakens in two in a comparison with this time one year ago. The strongest regional Outlook of +5% is reported in Bohemia, improving by 7 percentage points quarter-over-quarter and remaining relatively stable in comparison with 4Q 2019. Prague employers anticipate the weakest regional hiring pace with an Outlook of -2%. Hiring prospects for the region are 15 percentage points stronger when compared with the previous quarter, but dip by 10 percentage points in a comparison with the final quarter of 2019.
Organization Size Comparisons
Job seekers in two of the four organization size categories can expect some hiring opportunities in the coming quarter, most notably for Small firms (+6%). Meanwhile, Micro employers (-1%) report the weakest hiring plans.
Employers in 22 of the 43 countries and territories surveyed by ManpowerGroup expect to add to payrolls in the period up to the end of December 2020. In 16 countries and territories employers expect to reduce payrolls, while flat hiring activity is forecast in five. When compared with the third quarter of 2020, hiring prospects improve in 37 countries and territories, but weaken in five, with no change reported in one. Employers in 41 countries and territories report weaker hiring plans when compared with this time one year ago, with no change in one and an improvement in one – Turkey. The strongest labor markets are expected in Taiwan, the United States, Turkey, Japan and Greece, while the weakest hiring intentions are reported in Panama, Costa Rica, South Africa, Colombia and the UK.
The next ManpowerGroup Employment Outlook Survey featuring the forecast for the 1Q 2021 period will be published on 8 December 2020.
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