The Net Employment Outlook for Q3 2024 is 22%,
down 6% compared to Q3 2023
- Employers in North America
(27%) reported the strongest hiring intentions, followed by
Asia Pacific (23%), South and
Central Americas (22%), and Europe, Middle
East, and Africa
(18%).
- Across sectors, the IT industry continues to report positive
hiring intentions at 29%, followed by Financials & Real Estate
and Health Care & Life Sciences, both at 27%.
- More than half (55%) of employers expect to increase headcount
due to AI and machine learning over the next two years and nearly
half (48%) of companies said they have already adopted AI,
including generative conversational AI.
MILWAUKEE, June 11,
2024 /PRNewswire/ -- Global hiring intentions are
holding strong for the third quarter of 2024, with a Net Employment
Outlook (NEO) of 22%, though outlooks weaken since Q3 2023
according to the latest ManpowerGroup Employment Outlook
Survey. The Survey, which gathered data from over 40,000 employers
across 42 countries between April 1-30,
2024, reveals that while the NEO remains unchanged from the
previous quarter, it represents a -6% decline compared to the same
period last year. This year-over-year decrease indicates that
economic uncertainties continue to impact hiring plans.
Additionally, the Survey found that employers are beginning to
identify the impact of artificial intelligence (AI) and machine
learning (ML) technologies. More than seven in 10 employers (72%)
believe AI and ML will have a positive impact on business
performance, especially in the IT and Financials and Real Estate
industries. Most (70%) plan to leverage AI to boost upskilling,
reskilling, and training efforts.
"Though labor markets are holding strong in many markets,
ongoing economic uncertainty continues to give employers pause,"
said Jonas Prising, ManpowerGroup
Chairman & CEO. "Most are incrementally more cautious than this
time last year, prioritizing hiring for the core skills they need.
At the same time – the promise of AI advances is front of mind for
businesses across every industry. This data shows organizations are
focusing on upskilling their current workforce and maximizing the
potential of AI to drive efficiencies and boost productivity."
Used internationally as a bellwether of labor market trends, the
NEO is calculated by subtracting the percentage of employers who
anticipate reductions in staffing levels from those who plan to
hire.
Q3 KEY FINDINGS
- Global hiring outlooks remain steady from Q2 to Q3 2024 at 22%
but are down -6% year-over-year.
- The strongest hiring plans are reported in Costa Rica (35%), Switzerland (34%), Guatemala (32%), and Mexico (32%), while the weakest outlooks are
in Argentina and Romania, both at 3%.
- Employers in the IT (29%), Financials & Real Estate (27%),
and Health Care & Life Sciences (27%) sectors report the
strongest hiring intentions.
- Nearly half (48%) of companies said they have already adopted
AI, including generative conversational AI. This is a 13% increase
when compared to employers' responses one year ago (35%).
- More than half (55%) of employers expect to increase headcount
due to AI and machine learning over the next two years, nearly one
in four (24%) believe there will be no impact, and 18% anticipate
the technology will lead to staffing decreases.
- Employers reveal that AI optimism varies by seniority, with
senior leaders (69%) the most optimistic and factory floor and
frontline workers (57%) the least optimistic.
- Respondents cited high costs (33%), concerns about privacy and
regulations (31%), and lack of employees with AI skills (31%) as
among the top challenges in AI adoption.
GLOBAL HIRING PLANS BY REGION
North America: While
North American employers remain the most optimistic with a 27%
Outlook in Q3, hiring intentions have fallen -8% from Q3 2023 and
-4% from last quarter.
- Employers in the United States
(30%) reported the strongest hiring intentions, though the outlook
declines 5 percentage points year-over-year.
- U.S. employers report one of the strongest global Outlooks for
the IT sector at 50%.
Asia Pacific (APAC):
Hiring managers across the region anticipate the second
strongest regional Outlook (23%), a decline from both the
previous quarter (-4%) and when compared year-over-year
(-8%).
- Employers in India (30%) and
China (28%) continue to report the
strongest Outlooks in the region, while the most cautious Outlooks
were reported by employers in Hong
Kong (8%) and Japan
(12%).
- Hiring sentiment across the region varies depending on company
sizes, as employers in organizations with more than 5,000 employees
are four times more optimistic (32%) to hire than those with less
than 10 employees (8%).
Central & South America: At 22%, hiring
projections declined year-over-year (-7%), but improved +3%
quarterly.
- Strongest intentions are by employers in Costa Rica (35%), Guatemala (32%), and Mexico (32%).
- Employers in Guatemala report
the strongest hiring Outlook globally for both the IT** sector
(55%) and the Consumer Goods & Services sector (54%), while
Mexico has the strongest Outlook
for the Communication Services sector (44%), and Costa Rica reports the strongest intentions in
both the Financials & Real Estate (54%) and Healthcare &
Life Sciences (46%) sectors.
Europe, the
Middle East, and Africa
(EMEA): Employers in EMEA report the lowest hiring outlook
among all regions at 18%. While hiring intentions weakened -3%
compared to the same period last year, they have strengthened by
+2% since Q2 2024.
- Employers in Switzerland
(34%), South Africa (31%), and
The Netherlands (28%) report the
strongest hiring plans, while those in Romania (3%) and Israel (4%) anticipate the weakest hiring
activity.
- Globally, the Energy & Utilities sector shows the strongest
hiring Outlook in Switzerland at
66%. In Ireland employers report
the strongest global Outlooks for both Transport, Logistics &
Automotive (50%) and Industrials & Materials (47%).
To view the complete results for the third quarter 2024
ManpowerGroup Employment Outlook Survey, including regional and
country data, visit: https://go.manpowergroup.com/meos. The next
survey will be released in September and will report hiring
expectations for the fourth quarter of 2024.
ABOUT THE SURVEY
The ManpowerGroup Employment Outlook
Survey is the most comprehensive, forward-looking employment
survey of its kind, used globally as a key labor market indicator.
The Net Employment Outlook (NEO) is derived by taking the
percentage of employers anticipating an increase in hiring
activity and subtracting from this the percentage of employers
expecting a decrease in hiring activity.
SURVEY METHODOLOGY
The methodology used to collect NEO
data has been digitized for the Q3 2024
report. Survey responses were collected from April 1-30, 2024, and 40,374 employers across
42* countries were asked about their third quarter hiring
intentions. Both the questions asked, and the
respondent profile remain unchanged. The size of the
organization and sector are standardized across all countries
and territories to allow international comparisons. All NEOs
referenced have been seasonally adjusted for easier interpretation,
comparison, and consistency.
*Note: Chile joined the
program in Q2 2024. There is currently no historical data, and the
data has not been seasonally adjusted.
**The IT industry
in Guatemala yielded a small
sample size in the Q3 Survey and these numbers should be treated as
indicative only.
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 70 countries and territories and has done so for more than 75
years. We are recognized consistently for our diversity – as a best
place to work for Women, Inclusion, Equality, and Disability, and
in 2024 ManpowerGroup was named one of the World's Most Ethical
Companies for the 15th time – all confirming our position as the
brand of choice for in-demand talent.
For more information, visit www.manpowergroup.com, or follow us
on LinkedIn, X (formerly Twitter), Facebook, and Instagram.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking
statements, including statements regarding labor demand
in certain regions, countries and industries, as well
as economic uncertainty and the use and impact of AI on the
global labor market. Actual events or results may differ
materially from those contained in the forward-looking statements,
due to risks, uncertainties and assumptions. These factors
include those found in the Company's reports filed with
the U.S. Securities and Exchange Commission (SEC),
including the information under the heading "Risk Factors" in
its Annual Report on Form 10-K for the
year ended December 31, 2023, whose information
is incorporated herein by reference.
ManpowerGroup disclaims any obligation to update any
forward-looking or other statements in this release, except as
required by law.
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SOURCE ManpowerGroup
