30% of Hungarian companies plan to expand their workforce in Q3
Thirty percent of domestic employers forecast an expansion in their current workforce in the third quarter of 2022, while 17% plan a cut. Meanwhile, companies continue to face hiring difficulties due to the talent shortage, according to ManpowerGroup’s Labor Market Forecast.
ManpowerGroup conducted the quarterly survey of more than 41,000 employers in 40 countries, in which a representative sample of 520 Hungarian employers was asked about their Q3 recruitment intentions.
As in the previous quarter, the Net Employment Indicator reached an average of +13%, an increase of five percentage points compared to the same period in 2021. Employers in Western Transdanubia indicated a record high intention to employ 39%.
There are significant differences between sectors, with the IT, technology, telecommunication, and media sectors being the most competitive: 42% of responders here plan to expand their workforce in Q3. In contrast, the education, health, social work, and government fields saw their lowest value since the fourth quarter of 2013, with an indicator of -8.
“It is optimistic that the intention to expand the workforce has stabilized, keeping the more restrained forecast in the second quarter. However, the lack of qualified workers places a huge burden on companies,” said Tamás Fehér, managing director of ManpowerGroup Hungary. “The talent shortage affects three-quarters of the companies, which is extremely high.”
The Labor Squeeze
According to the report by ManpowerGroup, three in every four (75%) companies have talent shortages and hiring difficulties, a 16-year high. Some 86% of employers surveyed in the banking, finance, insurance, and real estate sectors struggle with a talent shortage, followed by wholesale and retail (82%) and manufacturing (80%).
Among the technical skills and human strengths expected by employers are accountability and self-discipline, resilience and adaptability, and skills related to collaboration and teamwork.
“While it’s encouraging to see employers have the intention to hire workers, it’s been increasingly difficult for them to find the talent they need,” said Jonas Prising, ManpowerGroup Chairman & CEO. “On top of the skills gap challenge, employers are dealing with wage inflation and competition for workers, as many are switching industries altogether to suit their lifestyle better.”
Talent shortages resulting from the pandemic and the Ukraine conflict start to impact the supply chain and create greater uncertainty in the economic outlook, Prising explained.
“The need for organizations like ours to focus on reskilling and creating talent at scale has never been more important,” he added.
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