South African businesses see the biggest growth in hiring sentiment this quarter, according to the ManpowerGroup employment outlook survey.
Companies in the country are planning for a significantly healthy staffing climate in the coming quarter, with hiring managers reporting plans for a +32 percentage point net employment outlook.
Year-on-year, South Africa has experienced the highest growth in confidence rating with 40 percentage points.
ManpowerGroup SA, Managing Director Lyndy van den Barselaar said, “These results reflect the rise in business confidence following from the easing of lockdown restrictions that allowed for industries such as retail and hospitality to reopen on the back of the removal of the Covid-19 global travel ban”.
According to van den Barselaar, it is positive to see how organisations are adapting and preparing for business as usual by increasing staff count, particularly within certain sectors.”
Hiring growth is expected across nine of the 11 sectors in the quarter from April to June 2022 compared to the first quarter of the year.
Employers expect the net employment outlook to remain constant for one of 11 sectors compared to the last quarter but growth in all sectors compared to the second quarter of 2021.
The primary production sector is expected to see the highest hiring growth. The sector, which includes agriculture and mining, is expected to grow by 47%, while a 40% growth in hiring sentiment for the banking, finance, insurance and real estate is expected.
According to the survey, the manufacturing sector expects to see the lowest hiring growth, with employers reporting a net outlook of 27. 54.
Businesses can be categorised four organisation sizes:
- micro businesses: less than 10 employees
- small businesses: 10-49 employees
- medium businesses: 50-249 employees
- large businesses: 250 or more employees
Out of the four sizes of business organisations in the country, a relatively strong hiring pace for small businesses is expected. Small businesses have a net employment outlook of 36.
Hiring managers at organisations with more than 250 employees are planning for an outlook of 36. Compared with the last quarter, workers in these types of organisations can expect the net employment outlook to improve by five percentage points and grow 33 points compared against this quarter last year.
With a net employment outlook of 29, hiring managers in medium business expect the lowest-performing staffing environment.
IOL WEALTH