Global employer hiring intentions continued to moderate for the second quarter of 2024 amid economic headwinds, according to the latest ManpowerGroup Employment Outlook Survey.

The Net Employment Outlook (NEO) stands at +22% for Q2, down -2% year-over-year and -4% from Q1. The research is based on data collected from more than 40,000 employers in 42 countries between January 2-31, 2024. The NEO is calculated by subtracting the percentage of employers who anticipate reductions in staffing levels from those who plan to hire.

“After years of the post-pandemic economy clicking along at breakneck speed, a cooldown was inevitable,” said ManpowerGroup Chairman and CEO Jonas Prising. “Still, demand remains strong for skilled talent. Given the global talent shortage, we expect hiring managers to get creative in this climate, whether it's upskilling current staff or through more targeted recruitment, as businesses gauge conditions over the coming months.”

The strongest Net Employment Outlook level is anticipated in North America (+31%), followed by Asia Pacific (+27%), Central and South Americas (+19%) and Europe, the Middle East, and Africa (+15%).

By country, the strongest Net Employment Outlook levels are reported in India (+36%), the US (+34%), and China, Costa Rica, and the Netherlands all at +32%, with the weakest in Romania (-2%), Israel (-1%), and Argentina (+1%).

Meanwhile, employers in India (+6%), Hungary (+5%), Belgium (+4%), and the U.S. (+4%) reported the largest year-over-year increases in Net Employment Outlook levels, while Panama (-25%), Hong Kong, Israel, Norway, and Romania, each at -14%, posting the lowest levels.

The IT industry continued to have the most upbeat global hiring outlook at +34%, followed by financials & real estate (+29%), and health care & life sciences (+28%).

Global hiring by region

EMEA

Employers in EMEA tempered hiring effort resulting in a +15% regional Outlook, decreasing by -4% year-over-year, and -6% since Q1 2024. The Netherlands and South Africa led the way with +32% and +29%, respectively. Weakest is Romania with -2% expected workforce decline.

The strongest hiring intentions globally for the consumer goods & services industry are reported by employers in Switzerland (41%); health care & life sciences in South Africa (45%); and transport and logistics & automotive in the Netherlands (44%).

APAC

Hiring managers across the region anticipate the second strongest regional Outlook (+27%), unchanged year-over-year, but a -3% decline from last quarter. Employers in India (36%) and China (32%) reported the strongest Outlooks in the region, while the most cautious Outlooks were reported by employers in Japan (11%) and Taiwan (12%). The strongest Outlooks globally for the communication services industry sector are reported by employers in the Hong Kong (60%) and energy & utilities in China (37%).

North America

Despite a slight decline from Q1 2024 (-3%), North American employers remain the most optimistic with a +31% Outlook, which is up +1% from Q2 2023. Employers in the US (+34%) reported the strongest hiring intentions, followed by Canada (+22%), and Puerto Rico (+14%). The US reported the strongest industry Outlooks for IT at +51% and financial services & real estate at +50%.

Central & South America

At +19%, hiring projections declined both annually (-8%) and quarterly (-9%). The strongest intentions are by employers in Costa Rica (+32%), Mexico (27%), and Guatemala (+26). Argentina (+1%), Chile (+10%), and Panama (+15%) have the weakest Outlooks. The industrials & construction and transport & logistics industries lead with the strongest outlooks.

Further research by the Employment Outlook found that less than half (46%) of employers say they are on track to reach their gender equity targets. The report also found that employers expect most of the progress on gender equality to happen in the next two years. However, 38% of employers expect gender equality to be fully achieved in their organisation, this is compared to 24% of organisations where gender equality is already fully achieved. The majority, (61%) of employers said their organisation continues to invest in and grow its Diversity, Equity, Inclusion and Belonging (DEIB) programs and initiatives.

Meanwhile, 37% of companies saying that flexible working has helped them to retain talent and expand their candidate pool to be more diverse.

At the same time, the report states that technology has a key role to play in closing the gender gap at work. More than half, or 65% of employers said it has allowed them be more flexible, helping them to promote gender equality, and 61% say that gender equality is being helped by tech advancements.

Employers across the Asia-Pacific are the most optimistic about the effect of technology on promoting gender equality.

Most employers (66%) globally, said talent acquisition plays an important role in fostering a diverse candidate pool, and human resources (HR) and hiring decision makers have an important role in creating an equitable and inclusive environment for all, which results in higher retention.