ManpowerGroup Employment Outlook Survey 4Q 2020

Slovak Employers Report Subdued Hiring Intentions for 4Q 2020 

However, compared to the previous quarter, the recruitment environment has significantly improved, signaling its recovery 

Bratislava, September, 17th, 2020 According to the latest ManpowerGroup Employment Outlook Survey release, Slovakian employers report subdued hiring intentions with a Net Employment Outlook (NEO)1 of -1% for the coming quarter. After seasonal adjustment of data in order to eliminate the effect of seasonal fluctuations in recruitment activities, the value of the Index is +1%. Hiring intentions improve by 16 percentage points when compared with the previous quarter but are 4 percentage points weaker in comparison with last year at this time. 

Interviewing was carried out during the exceptional circumstances of the COVID-19 outbreak. The survey findings for the fourth quarter of 2020 reflect the impact of the global health emergency and may be notably different to previous quarters.  

Despite the considerable recovery of labour market, most employers are rather cautious about their hiring plans. Additional research, concerning the impact of the COVID-19 pandemic on the hiring climate, shows, that only 10 % of employers expect their companies to return to pre-COVID19 hiring levels in the next 3 months. This is compared with almost half (44%) of employers stating they don’t expect hiring levels to ever return to pre-pandemic levels. As a result of the pandemic, employers re-evaluate their ways of working. Almost one third (30%) of employers plan to allow their employees remote work and flexible working hours, almost a fifth (18%) of surveyed employers want to allow  100% remote work and 14% consider the possibility of part-time work. 17% of surveyed employers would allow their current employees to learn and develop new skills and 12% of companies would make the situation easier for their employees by expanding health and wellness benefits,” said Zuzana Rumiz, General Manager of ManpowerGroup Slovakia. 

Industry sectors comparison

The strongest hiring prospects are reported in the Finance & Business Services sector where the Net Employment Outlook stands at +14%. Modest job gains are expected in the Other Services sector with an Outlook of +6%, and in the Construction sector where the Outlook is +5%. Slow-paced hiring activity is also forecast for the Restaurants & Hotels sector and the Wholesale & Retail Trade sector, with Outlooks of +4% and +3%, respectively. However, employers in two sectors expect to trim payrolls, with Outlooks standing at -16% in the Manufacturing sector and -6% in the Other Production sector. 

Hiring sentiment strengthens in all seven industry sectors when compared with the previous quarter. Steep improvements of 36 and 24 percentage points are reported in the Restaurants & Hotels sector and the Finance & Business Services sector, respectively. The Other Services sector Outlook is 21 percentage points stronger, and Construction sector employers report an increase of 17 percentage points. 

In a year-over-year comparison, hiring plans improve in three of the seven industry sectors, most notably by 9 percentage points in the Construction sector and by 8 percentage points in the Finance & Business Services sector. However, hiring prospects weaken in four sectors, including a sharp decline of 22 percentage points in the Manufacturing sector. Elsewhere, Outlooks weaken by 7 and 6 percentage points in the Wholesale & Retail Trade sector and the Other Production sector, respectively.

Regional comparisons

The strongest labour market is anticipated in Bratislava, with a Net Employment Outlook of +7%. Elsewhere, limited workforce gains are expected in the Eastern and Western regions, with Outlooks of +4% and +1%, respectively. Central Slovakia employers report an uncertain Outlook of -1%. 

In a comparison with the third quarter of 2020, hiring prospects strengthen considerably in all four regions. Bratislava employers report an increase of 20 percentage points, while the Outlook for Central Slovakia improves by 17 percentage points. Hiring prospects are 16 and 15 percentage points stronger in the Eastern and Western regions, respectively. 

When compared with this time one year ago, employers in Western Slovakia report a decline of 5 percentage points, while Outlooks in both the Central and Eastern regions are 3 percentage points weaker. Meanwhile, hiring prospects in Bratislava remain relatively stable. 

Organization-size comparison

Employers in both the Large- and Micro-size categories expect to add to payrolls during the forthcoming quarter, reporting Net Employment Outlooks of +8% and +6%, respectively. Meanwhile, Medium employers forecast a flat labour market with an Outlook of 0%, while Small firms expect to trim payrolls, reporting an Outlook of -3%. 

Hiring prospects strengthen in all four size categories when compared with the previous quarter. Large employers report a sharp increase of 34 percentage points, while Outlooks are 14 and 13 percentage points stronger for Medium- and Micro-size employers, respectively. In the Small size category, the Outlook is 9 percentage points stronger. 

In a comparison with the final quarter of 2019, Medium employers report a decline of 7 percentage points, and Outlooks are 5 and 4 percentage points weaker for Small- and Large-size employers, respectively. However, Micro employers report an improvement of 2 percentage points.

Global Overview

The strongest labor markets are expected in Taiwan (+20%), the United States (+14%), Turkey (+10%), Japan (+9%) and Greece (+8%), while the weakest hiring intentions are reported in Panama (-18%), Costa Rica (-16%), South Africa (-13%), Colombia (-11%) and the UK (-8%).

For additional information, please contact: marketing@manpower.sk 

 

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  

 

This survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. Slovakia is one of 43 countries and territories participating in the quarterly measurement of employer hiring intentions. The survey for Quarter 4 2020 was conducted by interviewing a representative sample of 558 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 December 2020 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 labor market pressures. 

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 38,000 employers in 43 countries and territories. 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 substantial 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 a 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. 

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