Slovak Employers Report Subdued Hiring Intentions for 1Q 2020
Hiring intentions decline particularly in the Manufacturing sector
Bratislava, 10th December 2019 – According to the latest ManpowerGroup Employment Outlook Survey released today, Slovakian employers report subdued hiring intentions with a Net Employment Outlook (NEO)* of +3% for the coming quarter. Hiring prospects are the weakest reported in five years, declining by 2 percentage points when compared with the previous quarter and by 7 percentage points in comparison with the same period last year.
“Unemployment in the Slovak Republic continues to decline under 6%. This is very good news for people looking for a job, but companies increasingly complain that they cannot find enough suitable candidates. In-demand profiles are emphasizing not only specialized skills
in IT, engineering or skill trades, but companies also report a lack of candidates for nonqualified jobs in manufacturing and logistics. According to the ManpowerGroup Employment Outlook Survey for the first quarter of 2020, employers in 16% of large companies plan to increase the number of vacancies. Especially we are seeing the most inquiries from our clients in the automotive sector and logistics in the western part of the territory,” said Zuzana Rumiz, Managing Director of ManpowerGroup Slovakia.
Industry Sector Comparisons
Employers in six of the 10 industry sectors expect to add to payrolls during the upcoming quarter. The strongest labour market is anticipated by Transport, Storage & Communications sector employers who report a Net Employment Outlook of +11%. Elsewhere, Finance, Insurance, Real Estate & Business Services sector employers expect some job gains, reporting an Outlook of +7%, while Outlooks stand at +6% and +5% in the Construction sector and the Restaurants & Hotels sector, respectively. However, employers report uncertain hiring plans in both the Manufacturing sector where the Outlook is -2% and the Mining & Quarrying sector with an Outlook of -1%. Construction sector employers report a moderate improvement of 6 percentage points when compared with the previous quarter, and Outlooks increase by 3 and 2 percentage points in the Mining & Quarrying sector and the Transport, Storage & Communications sector, respectively. However, Manufacturing sector employers report a considerable decline of 9 percentage points. The Public & Social sector Outlook is 7 percentage points weaker, and Wholesale & Retail Trade sector employers report a decrease of 6 percentage points. When compared with this time one year ago, hiring prospects weaken in seven of the 10 industry sectors. Manufacturing sector employers report a sharp decline of 23 percentage points, while a considerable decrease of 10 percentage points is reported in the Finance, Insurance, Real Estate & Business Services sector. Outlooks are 7 and 6 percentage points
weaker in the Wholesale & Retail Trade sector and the Mining & Quarrying sector, however, hiring prospects improve by 3 percentage points in both the Construction sector and the Restaurants & Hotels sector.
Regional Comparisons
Bratislava employers report the strongest hiring intentions with a Net Employment Outlook of +6%, while Outlooks stand at +5% and +2% in the Eastern and Central regions, respectively. However, employers in Western Slovakia expect to trim payrolls, reporting an Outlook of -2%.
In a quarter-over-quarter comparison, employers in the Western region report a decline of 8 percentage points and the Bratislava Outlook also weakens, decreasing by 2 percentage points. Meanwhile, hiring prospects are unchanged in both the Central and Eastern regions.
Hiring sentiment declines in all four regions when compared with this time one year ago. Employers in Western Slovakia report a considerable decrease of 16 percentage points, while the Bratislava Outlook declines by 6 percentage points. Elsewhere, hiring plans are 4 and 3
percentage points weaker in Central and Eastern Slovakia, respectively.
Organization-Size Comparisons
The strongest hiring pace is anticipated by Large employers who report a Net Employment Outlook of +12%, while Outlooks stand at +5% and +3% for Medium- and Micro-size employers, respectively. However, Small firms report an uncertain Outlook of -1%. Hiring plans weaken for Small- and Medium-size employers when compared with the previous quarter, declining by 4 and 2 percentage points, respectively. Meanwhile, Micro employers report relatively stable hiring intentions and the Outlook for Large firms is 2 percentage points stronger.
When compared with the same period last year, Outlooks weaken in all four organization size categories. The most notable declines of 9 and 8 percentage points are reported by Large and Medium-size employers, respectively. Elsewhere, Small employers report a decrease of 4 percentage points and the Outlook for Micro firms declines by 3 percentage points.
Global Overview
The strongest hiring prospects are reported in Greece (+25%), Japan (+25%), Taiwan (+23%), the U.S. (+19%) and Romania (+14%), while the weakest hiring activity is expected in Panama (-1%), Argentina (+1%), Costa Rica (+1%), Italy (+1%) and Spain (+1%).
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*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.
respectively.
