Slovak employers report downbeat hiring intentions for 1Q 2021
Gloomy hiring sentiment reflected in particular in the Restaurants & Hotels sector
Bratislava (9 December 2020) – According to the latest ManpowerGroup Employment Outlook Survey released today, Slovakian employers report downbeat hiring intentions with a Net Employment Outlook (NEO)[1] of -4% for the coming quarter. Once the data is adjusted to allow for seasonal variation, the Outlook stands at -1%. Hiring prospects decline by 2 percentage points in comparison with the prior quarter and are 4 percentage points weaker when compared with this time one year ago.
Interviewing was carried out during the exceptional circumstances of the COVID-19 outbreak. The survey findings for the first quarter of 2021 are likely to reflect the impact of the global health emergency and may be notably different from previous quarters.
“Employers from 34 out of 43 countries participating in the global MEOS survey report a cautious improvement in hiring activities for the first quarter of the new year. From my point of view, these results are very good news, because it means that after the initial shock of the first wave of the COVID-19 pandemic, employers have gradually begun to accept that the new situation, triggered by the pandemic is a situation that is not going to disappear overnight. They realized that it is indispensable to adapt flexibly to emerging circumstances,” says Zuzana Rumiz, General Manager of ManpowerGroup Slovakia. “From my daily practice and communication with our clients, I can confirm that Slovak employers intensely perceive that we all will continue to function in these challenging conditions. It is visible that they transform their daily operation to be more flexible and make changes in adapting their businesses to new needs. As in other countries, also in Slovakia, the job offers from the most affected segments, such as gastronomy, culture or the hotel business, have practically disappeared overnight. Other sectors, such as retail, healthcare, logistics and manufacturing are recovering relatively quickly and are offering abundant opportunities. We have launched an initiative #stayemployed – #zostanzamestnany with the ambition to help those who have been impacted the most and connect them to new, short-term roles. At the same time, we strive to be good partners for our clients providing flexible, custom-made services to help them face the unstable present.”
Additional research* concerning the impact of the COVID-19 pandemic on the hiring climate shows, that half (50%) of employers doesn´t expect their companies to ever return to pre-COVID-19 hiring levels. This is compared with a third (34%) of employers stating to return to pre-COVID-19 hiring levels within 12 months. Only a small part (5%) of Slovak employers plans to achieve “normal” staffing levels in the next 3 months.
Industry Sector Comparisons
Employers in four of the seven industry sectors expect to trim payrolls during the coming quarter. The weakest hiring proEspects are reported in the Restaurants & Hotels sector, where the Net Employment Outlook of -23% reflects gloomy hiring sentiment. Manufacturing sector employers forecast a sluggish labor market with an Outlook of -9%, while Outlooks of -4% and -2% are reported in the Other Production sector and the Construction sector, respectively. Meanwhile, Wholesale & Retail Trade sector employers report cautiously optimistic hiring plans with an Outlook of +9%, and limited job gains are expected in the Finance & Business Services sector where the Outlook stands at +4%. In the Other Services sector, employers report a cautious Outlook of +1%.
Hiring prospects weaken in four of the seven industry sectors when compared with the previous quarter. A sharp decline of 25 percentage points is reported in the Restaurants & Hotels sector, while Outlooks are 10 and 5 percentage points weaker in the Finance & Business Services sector and the Construction sector, respectively. However, employers in three sectors report stronger hiring plans, most notably with increases of 6 percentage points in the Wholesale & Retail Trade sector and 5 percentage points in the Manufacturing sector.
When compared with this time one year ago, employers in six of the seven industry sectors report weaker hiring intentions. The most noteworthy decline of 25 percentage points is reported in the Restaurants & Hotels sector. Construction sector employers report a decrease of 10 percentage points, and Outlooks are 5 percentage points weaker in two sectors – the Manufacturing sector and the Other Services sector. Meanwhile, hiring prospects strengthen by 6 percentage points in the Wholesale & Retail Trade sector.
Regional Comparisons
Employers in two of the four regions expect to trim payrolls during the upcoming quarter. Bratislava employers anticipate the weakest hiring pace, reporting a Net Employment Outlook of -5%, while the Outlook for Central Slovakia stands at -4%. Elsewhere, employers in the Eastern region forecast limited job gains with an Outlook of +1%, while flat hiring activity is forecast for Western Slovakia with an Outlook of 0%.
Hiring plans weaken considerably in Bratislava when compared with the previous quarter, decreasing by 12 percentage points. A slight decline of 2 percentage points is reported in the Central region, while hiring plans remain relatively stable in Western Slovakia. Employers in Eastern Slovakia report no quarter-over-quarter change.
When compared with this time one year ago, hiring sentiment weakens in three of the four regions, most notably by 11 percentage points in Bratislava. Outlooks decline by 6 and 5 percentage points in the Central and Eastern regions, respectively, but employers in Western Slovakia report an improvement of 3 percentage points.
Organization-Size Comparisons
Employers in both the Medium- and Micro-size categories expect to trim payrolls in the upcoming quarter, reporting Net Employment Outlooks of -6% and -4%, respectively. Meanwhile, Large employers anticipate flat hiring activity with an Outlook of 0%, while Small employers expect limited job gains, reporting an Outlook of +3%.
Hiring prospects weaken in three of the four organization size categories when compared with the previous quarter. Micro employers report the most noteworthy decline of 8 percentage points, while Outlooks are 6 and 4 percentage points weaker for Large- and Medium-size firms, respectively. However, Small employers report an improvement of 5 percentage points.
In a comparison with the first quarter of 2020, Large employers report a considerable decline of 11 percentage points and Outlooks are 7 percentage points weaker in both the Micro- and Medium-size categories. Meanwhile, Small employers report an improvement of 5 percentage points.
Global Overview
During the next three months, employers anticipate the strongest hiring activity in Taiwan (+23%), the U.S. (+17%), Singapore (+15%), Australia (+10%) and Brazil (+10%). The weakest labor markets are expected in Panama (-7%), the UK (-6%), Switzerland (-4%), Austria (-2%) and Hong Kong (-2%).
Note to Editors
Commentary is based on seasonally adjusted data where available. Full survey results for each of the 43 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found in the ManpowerGroup Press Room at www.manpowergroup.com/meos.
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 37,500 employers in 43 countries and territories. For 1Q 2021, sample sizes are smaller than other quarters, reflecting the impact of the global health emergency so the total number of interviews is significantly lower than normal in some countries.
Slovakia is one of 43 countries and territories participating in the quarterly measurement of employer hiring intentions. The survey for Quarter 1 2021 was conducted by interviewing a representative sample of 565 employers in Slovakia and asking the same question: “How do you anticipate total employment at your location to change in the three months to the end of March 2021 as compared to the current quarter?”
The global ManpowerGroup Employment Outlook Survey has been running for more than 55 years and uses a validated methodology in accordance with the highest standards in market research. This survey helps to identify the hiring intentions of both regional and industry sector employers and facilitates preparation for labour market pressures. The survey serves as a bellwether of labour 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 labour markets are headed.
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 and Talent Solutions – creates substantially more value for candidates and clients across more than 75 countries and territories and has done so for over 70 years. We are recognized consistently for our diversity – as the best place to work for Women, Inclusion, Equality and Disability and in 2020 ManpowerGroup was named one of the World’s Most Ethical Companies for the eleventh year – all confirming our position as the brand of choice for in-demand talent. 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. More information available on www.manpower.sk
*425 Slovak employers were interviewed in October 2020
[1] The Net Employment Outlook is calculated by subtracting the percentage of employers anticipating a decrease in hiring activity from the percentage of employers anticipating an increase in employment. Seasonal adjustment is then applied to the data.
