- ManpowerGroup’s latest employment outlook survey found that hiring optimism has return to levels not seen since pre-pandemic.
- However, 69% of employers globally reporting that they cannot find the skills that they need.
- Ongoing talent shortages mean many employers may struggle to translate hiring plans to jobs created.
ManpowerGroup’s latest employment outlook survey found that hiring optimism has return to levels not seen since pre-pandemic. According to results, employers in all 43 surveyed countries report stronger hiring intentions year-over-year, with 14 of those countries reporting outlooks at a ten-year high.
The results point that the labor market is ready to bounce back, especially in the Netherlands, India, and the UK—which reported the strongest year-on-year improvements. Furthermore, employers in 15 countries report their highest hiring outlook since before the onset of the pandemic: Austria, Belgium, Canada, Finland, France, Germany, Ireland, Italy, Mexico, Netherlands, Norway, Spain, Sweden and the UK and U.S.
“This recovery is unlike any we have seen before with hiring intent picking up much faster than after the previous economic downturn,” said Jonas Prising, ManpowerGroup Chairman and CEO.
While the above is certainly great news, especially after a year of layoffs, furloughs, and salary cuts; the labor market continues to face challenges.
Talent Shortages Remain at 15-Year High
The survey concluded that the global talent shortage shows no signs of slowing, with 69% of employers globally reporting that they cannot find the skills that they need—a 15 year high for the second consecutive quarter.
Among organizations planning to increase headcount in the next quarter, ManpowerGroup found that 80% struggle to fill jobs due to a lack of skilled talent.
Ongoing talent shortages mean many employers may struggle to translate hiring plans to jobs created.
To attract skilled talent, organizations looking to increase their headcount are now offering more incentives, including:
- increased wages
- training and upskilling opportunities
- flexible work schedules
- flexible working locations
- signing bonuses
- non-financial benefits like vacation
- lowering required work experience
- elimianting job screening and drug testing.
Closing the Skills Gap
Employers are prioritizing training and development opportunities in order to address the skilled talent shortage. The survey found that a quarter of employers plan to invest in accelerated upskilling for employees.
When it comes to upskilling programs, the shorter the better, ManpowerGroup found. Employers reportedly prefer programs that are six weeks or less, with 7 out of 10 employers utilizing accelerated programs for both technical and soft skills.
Organizational commitment to reskilling and upskilling is great news, especially considering that previous surveys have found that workers are eager and willing to learn new skills.
Still, some barriers remain, specifically financial resources, time commitment, and access to the right partners.