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ManpowerGroup survey says US hiring to remain strong in Q3

June 12, 2018

US employers’ hiring outlooks remain strong for the third consecutive quarter, according to the latest Manpower Employment Outlook Survey, released today by ManpowerGroup Inc. (NYSE: MAN). The US ranked among the strongest outlooks for hiring among the 44 countries surveyed in the report. Other countries with solid hiring outlooks included Croatia, Taiwan, Japan, Hungary.

The survey included nearly 60,000 employers around the world.

"We are seeing optimism from business leaders across the world because of an improving global economy, with better growth prospects and stronger business performance.” said ManpowerGroup Chairman and CEO Jonas Prising. “Employment levels are growing in many countries and the quarter ahead looks bright for jobseekers, as long as they have the right blend of technical and soft skills employers are looking for today. To support those people that do not have the right skills, and fill open positions faster, employers need to build talent through targeted upskilling and reskilling programs. This will identify people’s adjacent skills, help them transition into new or emerging roles and enable employers to bridge increasing talent shortages.”

In the US, ManpowerGroup’s survey found 24% of the more than 11,500 US employer respondents plan to increase staff in the third quarter the same as in the year-ago quarter, while those planning to decrease was 3% compared to 4% in the year-ago quarter. This yields a seasonally adjusted net employment outlook of 18% for the third quarter compared 17% for the year-ago quarter.

US organizations plan to add staff across all 13 industry sectors in the third quarter. Employers report the strongest hiring intentions in leisure and hospitality, where 38% plan to increase hiring, with a seasonally adjusted outlook of 27%. The outlook for professional and business services is also strong at 22%. The transportation and utilities sector and the wholesale and retail trade sector also posted outlooks of 22% as online retail increases demand for distribution drivers.

“We continue to see double-digit hiring outlooks across the country, including all four regions of the country, all 13 sectors of the economy and all of the 100 largest MSAs,” said Becky Frankiewicz, president of ManpowerGroup North America. “As the US labor market edges closer to full capacity, we’re seeing rising demand for skilled workers especially in construction and retail distribution.”

Employers in construction report the strongest outlook in more than 11 years at 19%, and manufacturing continues to report the strongest hiring plans in 12 years as the sector continues its renaissance as it embraces advanced technology in this space.

“With strong hiring intentions across all industries we're seeing wider skills gaps so employers can no longer rely on a spot market for talent,” Frankiewicz said. “The best employers are beginning to invest in accelerated learning and development programs to grow their talent pipeline and working hard to bring in those on the edge of the labor market. This concentrated focus on reskilling and upskilling is more critical than ever to fill the vacancies evident in today’s employment market.”

All regions in the US reported positive third-quarter hiring plans. Hiring prospects year over year are slightly stronger in the Midwest, South and the Northeast, all up 2%, while employers in West report relatively stable hiring intentions when compared with the second quarter of 2017 at a 1% decrease.

Employers in Indiana, Wisconsin, Montana, Alabama, Alaska and Colorado report the strongest net employment outlooks. Of the 100 largest metropolitan statistical areas, the strongest job prospects are expected in Indianapolis; Raleigh, NC; Milwaukee; and Grand Rapids, Mich.

Globally, ManpowerGroup interviewed nearly 60,000 employers across 44 countries to forecast labor market demand in the third quarter. Results indicate that despite an uncertain geopolitical outlook, employer confidence remains resilient.