Slovak Employers Report a Slowed Hiring Pace for 4Q 2019
Hiring intentions decline in almost all sectors, regions and organization-sizes quarter-over-quarter
Bratislava, 19th September 2019 – According to the latest ManpowerGroup Employment Outlook survey release today, Slovakian employers report limited workforce gains with a Net Employment Outlook (NEO) of +6% for the coming quarter. Hiring prospects are the weakest in more than four years, declining by 2 and 6 percentage points from 3Q 2019 and 4Q 2018, respectively. Quarter-over-quarter, hiring opportunities decline in almost all industry sectors, regions and organization-sizes. “The ManpowerGroup Employment Outlook Survey reports positive forecast in hiring intentions for the end of the year, but the hiring pace is slowing down in nearly all sectors. Nevertheless, we see that 20% of large companies plan to increase their number of staff. Part of the challenge for employers is the inability to find suitable candidates for their vacancies, resulting in increasing wage levels, and a growing need to invest in employee reskilling and development. We’re also seeing employers recruiting abroad for both skilled and unskilled positions and placing a strong emphasis on HR marketing and investment in building an employer brand,” said Zuzana Rumiz, Managing Director of ManpowerGroup Slovak Republic.
Industry Sector Comparisons
Workforce gains are anticipated in seven of the 10 industry sectors during the coming quarter. The strongest labour market is anticipated by Wholesale & Retail Trade sector employers who report a Net Employment Outlook of +10%. Elsewhere, fair hiring prospects are reflected in Outlooks of +9% for two sectors ꟷ the Public & Social sector and the Transport, Storage & Communications sector ꟷ while Outlooks of +8% and +7% are reported in the Manufacturing sector and the Finance, Insurance, Real Estate & Business Services sector, respectively. However, flat hiring activity is forecast for the Agriculture, Hunting, Forestry & Fishing sector and the Construction sector, where Outlooks stand at 0%, while Mining & Quarrying sector employers expect to trim payrolls, reporting an Outlook of -4%. In comparison with the previous quarter, hiring prospects weaken in seven of the 10 industry sectors, most notably by 7 percentage points in both the Construction sector and the Finance, Insurance, Real Estate & Business Services sector. Meanwhile, hiring plans are slightly stronger in the Manufacturing sector and the Mining & Quarrying sector, where employers report improvements of 4 and 2 percentage points, respectively. Hiring intentions weaken in eight of the 10 industry sectors when compared with this time one year ago. A considerable decrease of 18 percentage points is reported in the Transport, Storage & Communications sector, while Manufacturing sector employers report a decline of 13 percentage points. However, the Outlook for the Public & Social sector improves by 8 percentage points and Restaurants & Hotels sector employers report an increase of 4 percentage points.
Regional Comparisons
Employers forecast payroll gains in all four regions during the October to December period. The strongest hiring activity is expected in Bratislava and Western Slovakia, with employers in both regions reporting Net Employment Outlooks of +8%. Elsewhere, the Outlook for the Eastern region stands at +5%, while Central region employers report an Outlook of +3%. Hiring plans decline by 3 percentage points in both Central Slovakia and Bratislava when compared with the previous quarter. Outlooks in both the Eastern and Western regions decrease by 2 percentage points. Hiring intentions also weaken in all four regions when compared with this time one year ago. Employers in both Eastern and Western Slovakia report declines of 6 percentage points, while Outlooks are 5 percentage points weaker in both Bratislava and Central Slovakia.
Organization-Size Comparisons
The strongest hiring plans are reported by Medium- and Large-size employers with Net Employment Outlooks of +10%. Micro employers anticipate slow-paced hiring activity with an Outlook of +4%, while the Outlook for Small employers stands at +3%. In a quarter-over-quarter comparison, hiring prospects decline by 5 percentage points for Large employers and by 2 percentage points for Small employers. Meanwhile, the Outlook for Medium firms remains relatively stable and Micro employers report no change. Large employers report a sharp decline of 22 percentage points when compared with this time one year ago. Hiring intentions also weaken for Small- and Medium-size employers, declining by 4 and 3 percentage points, respectively. However, Micro employers report no change.
Global Overview
In a comparison with the previous quarter, employers in 15 of 44 countries and territories report stronger hiring intentions, while employers in 23 expect a weaker hiring pace, with no reported change in six. When compared with the fourth quarter of 2018, hiring plans also strengthen in 15 countries and territories, decline in 23 and are unchanged in six. Employers expect to add to payrolls in 25 of 26 Europe, Middle East & Africa (EMEA) region countries surveyed during the coming quarter, while employers in Spain expect a flat labor market. In a comparison with the previous quarter, hiring plans strengthen in 10 countries but weaken in 12. When compared with last year at this time, Outlooks improve in eight countries, but decline in 14. The strongest hiring intentions for the coming quarter are reported in Greece and Slovenia, while employers in Spain, the Czech Republic and Switzerland report the weakest hiring sentiment. The next ManpowerGroup Employment Outlook Survey featuring the forecast for the 1Q 2020 period will be published on 10 December 2019.
About ManpowerGroup
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 Slovakia
Through a network of six offices, we provide staff for around 500 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.
