Irish employers reporting strongest hiring intentions since 2007

Manpower

Latest Manpower Employment Outlook Survey shows:

  • Net Employment Outlook of +12% for Q4 of 2016 is strongest Irish labour market forecast reported since Q2 2007
  • Employers in both the Restaurant and Hotels sector and the Electricity, Gas and Water sector report strongest Net Employment Outlook for Q4 2016 (+22%)
  • Employers in ten of eleven sectors evaluated report positive hiring intentions for the next quarter, with those in five sectors reporting a double digit Net Employment Outlooks
  • Employers in Ulster report strongest hiring forecast regionally

 

Irish employers are reporting the strongest labour market forecast recorded in Ireland since 2007, according to the latest Manpower Employment Outlook Survey released today by ManpowerGroup Ireland, the leader in contingent and permanent innovative workforce solutions.

The survey, which measures employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter, shows that Irish employers are reporting a seasonally adjusted Net Employment Outlook of +12% for the fourth quarter of 2016. This is a three percentage point improvement over the last quarter and seven percentage points ahead of the same time frame last year. This Net Employment Outlook of +12% is the strongest reported in Ireland since Q2 of 2007.

In addition, employers in ten of the eleven sectors evaluated reported positive hiring intentions for Q4 of 2016, with five sectors reporting a double digit Net Employment Outlook figure.

The Manpower Employment Outlook Survey is conducted by interviewing a representative sample of 620 Irish employers. All survey participants were asked: “How do you anticipate total employment at your location to change in the three months to the end of the year 2016 as compared to the current quarter?”

The survey reveals that employers in the Restaurant & Hotels sector and the Electricity, Gas and Water sector are both forecasting the strongest hiring intentions of all 11 sectors for the final quarter of 2016 with a Net Employment Outlook of +22% each. Employers in the Restaurant & Hotels sector are also reporting the strongest year on year growth of all 11 sectors, with a sharp year on year increase of 26 percentage points when compared with the same period last year.

The Electricity, Gas and Water sector recorded a year on year increase of 12 percentage points for Q4 2016, representing the second strongest year on year increase this quarter. This was matched by the Wholesale & Retail sector with employers also reporting a 12 percentage point increase with a Net Employment Outlook of +15% for the final quarter in 2016.

In terms of quarter on quarter growth, employers in the Agriculture, Forestry and Fishing and Restaurants and Hotels sectors are forecasting the strongest improvement among the 11 sectors surveyed, with both outlooks improving 5 percentage points on the previous quarter.

Regionally, employers in Ulster are reporting the strongest hiring intentions of all provinces polled, with an outlook of +20%, as employers expect a significant injection of employment opportunities in the final quarter of 2016. Employers in Connaught recorded the only negative hiring intentions with an outlook of – 2%.

John Galvin, Head of Sales with ManpowerGroup Ireland, says:

“The results of the Manpower Employment Outlook Survey for Q4 2016 show consistent employer confidence in the Irish marketplace with positive hiring intentions in ten of the eleven sectors evaluated. Brexit has been a contentious issue for many employers in Ireland but the Q4 survey suggests that employers in most sectors, despite the uncertainty surrounding Britain’s exit from the EU, are still planning to up recruitment levels in the remaining quarter of 2016.”

“Recent growth in the Restaurant & Hotels sector is supported by the MEOS Q4 results, indicating an extremely active hiring pace for the remainder of the year. This is supported by a number of factors such as the fact that Dublin Airport saw its busiest ever month this July as more people travel to Ireland. Fáilte Ireland also recently announced increased attendance of an average of 20% at The Guinness Storehouse and the National Gallery, indicating that more and more people are travelling to our world renowned tourist resorts. The knock on effect is an increase in the number of people staying in our hotels and eating in our restaurants, resulting in further recruitment in this sector. The Finance and Business Services sector was the only sector featuring negative hiring intentions this quarter, as employers remain cautious in the wake of Brexit.”

Below is an outline of the key findings from the Manpower Employment Outlook Survey:

  • Ten of the 11 sectors evaluated reported positive hiring intentions for Q4 of 2016, with five sectors reporting a double digit Net Employment Outlook.
  • The Electricity, Gas and Water and Restaurant & Hotels sectors both forecast the joint strongest hiring intentions of all 11 sectors evaluated as both record Net Employment Outlook of +22% for the rest of 2016.
  • The Restaurant & Hotels sector also represents the strongest year on year growth, registering a 26 percentage point increase on the same period last year. This is also a 5 percentage point increase on the previous quarter, making it the first time the sector has seen four consecutive quarters of positive quarter on quarter growth.
  • Employers in the Wholesale & Retail sector registered the third strongest outlook of +15%. This is up 12 percentage points on the same period last year and 3 percentage points on the previous quarter.
  • Employers in the Public & Social sector registered the next strongest outlook, reporting a +14% Net Employment Outlook for Q4 2016. This is an 11 percentage point increase on the same period last year and a further 3 percentage point increase on the previous quarter.
  • Employers in the Pharmaceutical sector also report a positive outlook of +11% points for Q4 2016, representing no increase on the previous quarter but a 2 percentage point increase when compared with the same quarter last year. 
  • Manufacturing sector employers are reporting a Net Employment Outlook of +8% for the final quarter of 2016. This is an 8 percentage point increase on the same period last year, and up one percentage point on the previous quarter.
  • Agriculture, Forestry and Fishing sector employers are also reporting a +7% Net Employment Outlook, a 5 percentage point increase on the previous quarter. However, this represents no change when compared with same period last year.
  • Year on year growth in the Construction sector was also up 11 percentage points as employers forecast a +8% Net Employment Outlook for the remaining quarter of 2016. Mining & Quarrying employers are also reporting a Net Employment Outlook of +8%, up 1 percentage point when compared with the same period last year, but down 3 percentage points on the previous quarter.
  • Employers in the Transport Storage and Communications sector are reporting a +6% Net Employment Outlook for the final quarter of 2016. This represents a 6 percentage point decrease on the previous year as recruitment in the sector slows down. It is also down 6 percentage points on the previous quarter.
  • Employers in the Finance and Business Services sector were the only ones to predict negative hiring intentions for Q4 2016, with a Net Employment Outlook of -1%. This is down 11 percentage points year on year and down 6 percentage points on the previous quarter.
  • Employers in Ulster are reporting the strongest hiring intentions of all the 4 provinces polled, with an outlook of +20%, up a substantial 21 percentage points on the previous quarter and 9 percentage points on the same quarter last year.
  • Employers in Leinster continue to anticipate very positive growth, with an outlook of +13%, up 4 percentage points for the previous quarter and up 12 percentage points on the same period last year.
  • Employers in Munster also report an outlook of +9%, the same as the previous quarter but up 3 percentage points on the same period last year.
  • The hiring pace in Connaught is expected to slow for the second consecutive quarter, with a Net Employment outlook of – 2%. This is down 9 percentage points on the previous quarter and also down 9 percentage points on the same period last year.
  • Employers in Dublin recorded a +14% Net Employment Outlook for the final quarter of 2016, up 11 percentage points on the same period last year, but a decline of 1 percentage point on the previous quarter.

Results for all 43 countries can be viewed in the new interactive Manpower Employment Outlook Survey Explorer tool at http://manpowergroupsolutions.com/DataExplorer/

The next Manpower Employment Outlook Survey will be released on the 13th of December 2016 and will report hiring expectations for the first quarter of 2017. The Manpower Employment Outlook Survey is available free of charge to the public and can be downloaded from www.manpower.ie.