South African employers are reporting “cautious” third-quarter hiring intentions, according to the latest 'Manpower Employment Outlook Survey', with hiring expectations “stuck in low gear”, Manpower South Africa MD Peter Winn said.

Globally, employment was expected to increase, in varying degrees, over the next three months, which was indicative of emerging markets continuing their optimism, CEO and chairperson Jeffrey Joerres stated.

Job growth was expected in 35 of the 39 countries and territories Manpower surveyed. “This is not to say that companies are not remaining somewhat cautious, however, they are steadily coming off the ‘no change’ fence,” he added.

South Africa’s net employment outlook increased by three percentage points, which Winn said was the weakest level since 2006. However, “modest” job growth was expected over the next three months.

When compared with the previous quarter, South Africa’s hiring intentions were unchanged, but year-on-year, the outlook was eight percentage points weaker.

“While our data indicate some modest job growth over the next three months, overall employer confidence continues to be subdued,” Winn said.

Employers in seven of ten industry sectors and four of five regions reported weaker quarter-on-quarter hiring plans.

Opportunities for job seekers were strongest in the Free State, with a net employment outlook of +6%, while modest headcount growth was expected in Gauteng (+4%), and the Western Cape (+3%).

KwaZulu-Natal employers report cautious hiring plans with an outlook of +1%. In the Eastern Cape, employers report uncertain hiring prospects with an outlook of -1%.

Quarter-on-quarter, the report states that hiring intensions remain relatively stable in the Free State, Western Cape, Gauteng and Eastern Cape. In KwaZulu-Natal, the outlook was two percentage points lower than the previous quarter.

But, year-on-year, the outlook weakens in four of the five regions. In the Eastern Cape, outlook declines by 12 percentage points, with 10 percentage points in the Western Cape, seven percentage points in Gauteng and six percentage points in Kwazulu-Natal. The outlook remained fairly stable for the Free State.

Strong hiring expectations at +20% were reported in the mining and quarrying sector, and the electricity, gas and water supply sector reporting an outlook of +5%, with modest outlooks of +3% in the agriculture, hunting, forestry and fishing, manufacturing and public and social sectors.

Negative hiring intentions are forecast in the construction sector, with an outlook of -4%. Weaker hiring expectations are down by -1% in the restaurant and hotel sector.

The restaurant and hotel, electricity, gas and water supply, finance, insurance, real estate and business services, public and social, and wholesale and retail trade sectors reported their least optimistic forecasts since 2006.

GLOBAL TRENDS

Employers in India, Brazil, Taiwan and Turkey reported the strongest third-quarter hiring plans, while those in Spain, Greece, Italy and Ireland reported the weakest, and only negative, hiring forecasts.

Job prospects continue to be strongest in the Asia Pacific region, with outlooks decreasing slightly from three months ago in Australia, India, Japan, Singapore and Taiwan, the report stated.

“Many of our clients in developed markets are beginning to feel the talent crunch as aging workers retire, clients in emerging markets may have a surplus of candidates who often don’t possess the level of education, skills and experience required for the job.

“The growing skills shortage will affect virtually every industry and every economy; and businesses, educators and governments must collaborate to find innovative ways to align learning and skills development with business needs to ensure future economic growth,” said Joerres.