German Companies Reduce Hiring Plans as Skilled Labor Shortage Persists, ManpowerGroup Survey Finds

15.09.2023 – 08:37

ManpowerGroup Deutschland GmbH

Frankfurt am Main (ots)

The seasonally adjusted net employment outlook for October to December falls to 22 percent. Energy and utilities sector as well as IT industry with the highest demand for personnel. Job seekers find new positions primarily in Berlin and Munich. Result of the additional survey: New recruiting strategies in response to the shortage of skilled workers.

The ManpowerGroup labor market barometer for the 4th quarter shows: The companies surveyed across all sectors still want to hire more employees than lay them off, but the willingness to hire them is decreasing. Compared to the previous quarter, the net employment outlook (NBA) deteriorated by 6 percent, but improved slightly compared to the same period last year (2 percent) and, after deducting the usual seasonal fluctuations, is plus 22 percent. This puts Germany 8 points below the global average and only ranks in the bottom quarter of the country list.

“The data for the fourth quarter shows that employers are planning moderate hiring in view of the economic uncertainties,” says Iwona Janas, Country Manager of ManpowerGroup Germany, classifying the results. “Companies are focusing on filling the business-critical roles they need to grow. Companies in the energy, utilities and IT sectors in particular are showing the strongest demand for employees.”

High personnel requirements in the energy and utilities sector as well as in the IT industry

According to the global study, job seekers particularly benefit from a high level of job vacancies in the energy and utilities sector as well as in the IT industry. With an NBA of 47 percent, this value is 16 percentage points above the global average for the energy and utilities industry. The most significant increase compared to the same period last year (plus 16 percentage points) was reported by employers in the IT industry with an NBA of 36 percent. The weakest sectors are communication services and transport, logistics and automobiles. There the NBA is at 7 and 18 percent.

Job prospects in Berlin are particularly good, the labor market in the Ruhr area is declining significantly

Berlin offers the best job prospects of all eight regions examined with an NBA of 38 percent. Compared to the previous quarter, the NBA in the capital increased by 11 percentage points and by 16 percentage points compared to the same period last year. Employers in Munich and Frankfurt are also confident with an NBA of 31 and 30 percent. Companies in the Ruhr area (-20 percent) and in southern Germany (-13 percent) recorded the largest declines compared to the previous quarter. With an NBA of 16 percent, the Ruhr area is now the least competitive region in Germany.

Job opportunities are greatest at medium-sized and large companies

When asked about company size, it becomes clear that personnel decision-makers in medium-sized (50-249 employees) and large (250 or more employees) companies with an NBA of 28 or 27 percent want to expand their workforce. The NBA was still 38 percent among large companies in the last quarter, but this figure fell by 11 percentage points for the coming quarter. Small companies with fewer than 10 employees reported the largest increase, with a change of 7 percentage points compared to the previous year, but with an NBA of 16 percent, they are still reluctant to hire new employees.

Companies are responding to the shortage of skilled workers with new recruiting strategies

As part of a special survey, ManpowerGroup also examined how the shortage of skilled workers affects recruiting strategies. Companies stated that they wanted to hire more permanent employees (45 percent) than temporary employees (37 percent). 25 percent of companies want to hire so-called gig workers, independent contractors who work on projects. Almost half of employers in the energy & utilities sector (48 percent) and information technology (47 percent) report the most optimistic prospects for temporary workers.

“Especially against the background of the planned energy transition, there is an enormous need for ‘green jobs’ and employees with the corresponding skills. IT specialists, for example in the areas of cybersecurity, software/app development, user experience and quality assurance, also have excellent opportunities on the labor market. This also ensures a great interest in personnel services,” says Janas.

The results of the ManpowerGroup labor market barometer for the 4th quarter can be found under Study Labor Market Barometer / MEOS Q4-2023.

The detailed results of the additional survey will be published shortly in another press release.

The net employment outlook (NBA) is calculated as the proportion of companies that expect employment to increase minus those that forecast a decline in employment. 1020 companies across Germany were surveyed. The current investigation closed on July 31st.

About the ManpowerGroup labor market barometer

Also known as the ManpowerGroup Employment Outlook Survey (MEOS), the labor market barometer has been around for over 60 years. The study is published every three months and is considered an important indicator worldwide for assessing future labor market developments. The study is the most comprehensive, future-oriented employment survey of its kind and representatively measures employers’ expectations of their own company’s employment situation in relation to the quarter ahead. The results are broken down by industry and region and attract attention from economists, labor market experts and financial analysts around the world.

About ManpowerGroup Germany

With around 11,000 employees, ManpowerGroup is one of the largest personnel service providers in Germany. The companies Manpower, Experis, Talent Solutions, Stegmann and specialized individual brands operate under the umbrella of the group of companies at 160 locations nationwide. ManpowerGroup is a pioneer of temporary employment and has invented the temporary employment model. The company has now been active on the market for applicants and companies for over 70 years and sets industry standards. ManpowerGroup supports companies in their transformation in the constantly and rapidly changing world of work and provides comprehensive solutions for recruiting, developing and managing the skilled workers necessary for sustainable success. ManpowerGroup has been active in Germany since 1965 and is part of the American ManpowerGroup(TM).

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Press contact:

ManpowerGroup Deutschland GmbH & Co. KG
Press office
Cathrin Bruhn
Frankfurter Strasse 60-68
65760 Eschborn
E-Mail: [email protected]

Original content from: ManpowerGroup Deutschland GmbH, transmitted by news aktuell

2023-09-15 06:40:18
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