Firms cut back on hiring plans in Q4: survey

The transportation and utilities sector is likely to trim its current headcount.

About one in 10 (13%) of employers expressed plans to expand their headcount in the fourth quarter of 2019, bringing the resulting net employment outlook to its weakest in two years at +4%, according to the latest survey by ManpowerGroup.

Accordingly, 8% of employers surveyed expect a decrease whilst 77% expect no change in their payroll. Hiring prospects declined by 7 ppt compared to the previous quarter and is 8 ppt weaker compared to the same time last year.

“Anticipating that business will be affected by the economic downturn, companies are limiting their hiring activity. Some companies are also turning to upskilling their employees instead of hiring new staff,” said Linda Teo, country manager of ManpowerGroup Singapore.

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Compared to Q4 2018, hiring intentions are notably weakened in all seven industry sectors, the report noted. The public administration and education sector employers report a 17 ppt decline, although it remains the strongest labor market with an outlook of +19%. Additionally, the outlook for the manufacturing sector decreased by 12 ppt to 0%, its weakest hiring outlook in a decade.

On the other hand, the transportation and utilities sector expects to trim its headcount as its outlook crashed 13ppt to -5% QoQ in Q4 compared to the previous quarter. Outlook in this sector crashed 12 ppt in the fourth quarter compared to Q4 2018.

Furthermore, hiring intentions are considerably weaker in the services sector where employers reported a decline of 16 ppt to +2% QoQ, its weakest in 10 years. Meanwhile, the finance, insurance and real estate sector’s outlook fell by 9 ppt in Q4 compared to the same quarter the previous year, according to ManpowerGroup.

Elsewhere, employers in the mining and construction sector as well as the wholesale and retail trade sector expect moderate hiring activity, with outlooks at +10% and +8%, respectively.

Despite the weaker outlooks, Teo noted that pockets of opportunity exist as employers are still hiring to fill skill gaps in their workforce.

Also read: Local technology and banking hiring to persist in 2019

“Job seekers, especially IT talent, with trending skills such as digital marketing and blockchain will find it easier to secure a job as companies move towards digitising their processes,” she added.

The ManpowerGroup Outlook Survey forecasted payroll for all eight Asia Pacific countries and territories surveyed in the next three months. Hiring plans also reportedly improved in three countries and territories when compared with Q3 2019 but weakened in four. The strongest labor market in the region was anticipated by Japanese employers for the sixth consecutive quarter, whilst the weakest outlooks were reported in both China and Singapore, according to the report.