Recruiting

The Great Hiring Crisis or the Great Rehiring?

When it comes to understanding the hiring market, it’s all about which numbers you look at and how. For example, in April, job openings in the United States hit a record 9.3 million. With so many jobs to fill, you might view that as a crisis. However, forecasting for hiring by some organizations paints a much more optimistic view. How do we unpack all of this? As always, the answer is in the numbers.

recruiting

A recent survey by ManpowerGroup shows more than 7,300 employers reporting their most optimistic outlooks since 2000 for the 3 months ahead.

Employers in all 12 U.S. industries report positive outlooks, with the strongest hiring activity forecast for leisure and hospitality (+41%), wholesale and retail trade (+29%), education and health services (+27%), transportation and utilities (+26%), and both durable and nondurable goods manufacturing (+25%). The strongest hiring outlooks are reported in Delaware (+43%), Utah (+40%), Virginia (+39%), North Carolina (+37%), and Michigan (+36%); the weakest are reported in Wyoming (+12%), Puerto Rico (+16%), and Alabama and the District of Columbia (both +18%).

As hiring picks up, talent supply remains muted. COVID-19 has created the biggest workforce shift and reallocation of in-demand skills since WWII—almost half of employers reported difficulty filling roles in operations and logistics, and nearly a quarter (23%) reported the same for manufacturing and production roles. There is rising demand, too, for relevant soft skills, with resilience, collaboration, and critical thinking and analysis being the most sought after from employers across all sectors.

“Employers are ready to welcome their workers back as restrictions lift and America prepares for the New Next while in real life connections resume,” says Becky Frankiewicz, ManpowerGroup President for North America. “Yet childcare challenges, health concerns and competition mean demand still outstrips supply which is dampening the ‘big return’ of the American workforce. It’s a worker’s market and employees are acting like consumers in how they are consuming work—seeking flexibility, competitive pay and fast decisions. Now is the time for employers to get creative to attract talent—and to hold onto the workers they have with both hands.”

RegionQ3 2021Quarter-Over-Quarter VariationYear-Over-Year Variation
West+23%+5%+21%
Midwest+24%+6%+19%
South+26%+8%+23%
Northeast+26%+10%+22%

U.S. Hiring Plans by Industry Sectors, Regions, Metro Areas, and States

  • Employers in all 12 U.S. industry sectors expect to add workers during the upcoming quarter, with outlooks improving when compared with both the prior quarter and the same period last year: leisure and hospitality (+41%), wholesale and retail trade (+29%), education and health services (+27%), transportation and utilities (+26%), durable goods manufacturing (+25%), nondurable goods manufacturing (+25%), professional and business services (+21%), construction (+19%), information (+18%), other services (+16%), financial activities (+15%), and government (+15%).
  • Employers in all 4 U.S. regions report positive hiring plans for the next 3 months. The Northeast and South both report outlooks of +26%, with the Midwest reporting an outlook of +24% and the West reporting an outlook of +23%.
  • Employers in Delaware (+43%), Utah (+40%), Virginia (+39%), North Carolina (+37%), and Michigan (+36%) report the strongest outlooks nationwide. Of the 100 largest metropolitan statistical areas, the strongest outlooks are expected in Deltona-Daytona Beach-Ormond Beach, Florida (+54%); Fresno, California (+46%); Salt Lake City, Utah (+46%); Baltimore-Towson, Maryland (+44%); Provo-Orem, Utah (+44%); and New Haven-Milford, Connecticut (+43%).  

View complete results for the ManpowerGroup Employment Outlook Survey here.

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