Employers to slow job creation as inflation bites – The Irish Times

Irish employers expect to slow hiring intentions in the fourth quarter of the year with confidence on the ground due to inflationary and macroeconomic concerns.

According to ManpowerGroup’s latest Employment Outlook Survey, employers of all sizes plan to significantly slow hiring, bringing the national hiring outlook down to 28%, down 12 percentage points from last quarter. and a decline of 6 points year-on-year. .

The report is based on responses from 408 employers across the Republic. He asked whether employers plan to hire additional workers or reduce the size of their workforce in the next quarter.

The technology, IT, telecommunications and media sector saw the largest drop in net employment outlook, at 17%, down 25 percentage points from last quarter and down 44 percentage points year-on-year. The decline was driven primarily by a surge in job cuts as tech companies restructure after their hiring boom of early 2022, the report said.

The early post-pandemic recovery, previous high-volume hiring drives, slowing tech sector growth and rising interest rates all rattled confidence in the sector early in the fourth quarter.

The tech sector was Ireland’s best performing sector and remained among the best performers throughout 2022, but now has the second lowest employment outlook of any sector.

“Companies that have boosted hiring confidence in the tech and IT sector over the past year must now downsize rather than hire new employees to grow,” said John Galvin, Managing Director of ManpowerGroup.

“Layoffs in the technology and IT sector have become much larger in the last quarter, a change driven by large technology companies which may have overhired as they emerged from the pandemic during the reopening of their markets.

“They now find themselves with a surplus of employees, which now forces them to dispose of recent hires and withdraw certain job offers. Despite this, hiring remains in the double digits overall, driven largely by small and medium-sized businesses outside of the big tech space.

Technological slowdown

Dublin employers report a net positive hiring outlook of 23%. That’s down 25 percentage points from last quarter’s record and down 17 percentage points year-over-year. This is the largest drop in outlook of any region.

Outside the capital, Munster (+28%), Connacht (+35%) and Leinster (+39%) all show strong prospects. Ulster is less promising at +8%.

“As our economic situation changes, the impacts on the market are felt most in Dublin,” Mr Galvin said.

“In previous quarters, the strong hiring optimism seen by the IT and technology sector has been instrumental in sustaining employment prospects in Dublin.

“Now our data shows that the number of tech employers in the capital looking to downsize has tripled since last quarter, which is a big part of why we’re tracking a decline in the city’s hiring intentions. .”

Despite the downward trends for Dublin, the report highlights continued strength in other locations.

“The tech downturn in Dublin aside, we are encouraged by the continued strength of the hiring market in other areas, particularly Connacht where we continue to see strong optimism for hiring across a range of in-demand positions,” Mr. Galvin said.

Banking and finance remains Dublin’s strongest industry and a leading sector in Ireland, with employment prospects at +33%. Although down 16 percentage points from last quarter’s record, it is still up 5 percentage points year over year.

Source link

Comments are closed.