Employers Maintain Cautious Optimism with Steady Global Hiring Plans for Q1 2025

December 16, 2024 – Global hiring intentions have stabilized heading into the first quarter of 2025, with employers reporting a Net Employment Outlook (NEO) of 25 percent, according to the latest ManpowerGroup Employment Outlook Survey. The survey, which gathered data from over 40,000 employers across 42 countries, shows the outlook remaining unchanged from the previous quarter while showing a modest decrease of one percentage point year-over-year.

“As we move into 2025, we’re seeing stable year-over-year hiring trends with employers holding onto the talent they have and planning muted hiring for the quarter ahead” said Jonas Prising, chair and CEO of ManpowerGroup. “The fluctuations we have seen in recent quarters are beginning to stabilize – indicating employers have adapted to ongoing economic uncertainty and are maintaining steady workforce planning. The sustained strength in the IT sector and consistent hiring intentions among larger organizations point to stability too – and we hope to see this trend continue into 2025. Employers know a skilled and adaptable workforce is key to navigating transformation, and many are prioritizing hiring and retaining people with in-demand, flexible skills that can flex to where demand sits.”

With stable outlooks across the regions, employers in the North America (32 percent) region reported the strongest hiring intentions, followed by the Asia Pacific (27 percent), South and Central Americas (23 percent), and Europe, the Middle East, and Africa (19 percent). Employers in 12 countries report a stronger hiring outlook compared with the same period last year, weakening in 28, according to the ManpowerGroup report.

ManpowerGroup found that hiring expectations remain the lowest in Europe, the Middle East, and Africa (19 percent), and has weakened by two percentage points since the fourth quarter of 2024 and one percentage point year-over-year. Outlooks vary across the region with employers most keen to hire in South Africa (31 percent).

Businesses in the IT industry reported the brightest outlook, improving by two percentage points since the previous quarter and the same time last year. The strongest outlook globally for the financials and real estate industry vertical was reported by employers in Belgium (53 percent, tied with employers in China). Consumer goods and services in The Netherlands (47 percent); communication services in Germany (45 percent); energy and utilities in Belgium and Finland (both 44 percent); and industrials and materials in Norway (41 percent).

Employment Outlooks Across the Asia Pacific

Hiring managers across the Asia-Pacific countries anticipate the second strongest regional Outlook (27 percent), remaining unchanged from the previous quarter, but decreased by three percentage points when compared to the same time last year, the ManpowerGroup report found. Employers in India (40 percent) continue to report the strongest outlooks in the region, with most cautious in Hong Kong (six percent).

The strongest outlook globally for the transport, logistics, and automotive industry vertical was reported by employers in Singapore (67 percent). Employers in China reported the highest outlooks for both financials and real estate (53 percent, tied with employers in Belgium) and healthcare and life sciences (47 percent).

Outlooks Across the Americas

Employers across North, Central, and South America reported the strongest regional outlook for the first quarter (29 percent), with hiring intentions improving one percentage point quarter-over-quarter but declining -3 percentage points from the same period last year.

Related: Top 5 Hiring Trends for 2025

Employers in the U.S. (34 percent) reported the strongest hiring intentions across the regions, with the weakest in Argentina (-one percent). The strongest outlook globally for the information technology industry vertical was reported by employers in the U.S. (53 percent).

Outlooks by Industry Vertical

The ManpowerGroup report found that the global NEO for the communications services industry is 14 percent. This figure decreased since both the previous quarter and when compared to the same period last year by two and 16 percentage points, respectively.

The global NEO for the consumer goods & services industry is 20 percent. This figure decreased since both the previous quarter and when compared to the same period last year by five and two percentage points, respectively. In addition, the global NEO for the energy and utilities industry is 10 percent. This figure increased since the previous quarter but decreased when compared to the same period last year by two and 16 percentage points, respectively.

ManpowerGroup also found that the global NEO for the financials and real estate industry is 33 percent. This figure increased by one percentage point since the previous quarter and remained unchanged when compared to the same period last year.

Executive Search in 2024: Challenges, Trends, and Hopes for a Hiring Resurgence in 2025

For many search firms in almost all industry segments, 2024 has been a tough year. There are many reasons for the recent downturn, and some firms have experienced a dip in revenues for even longer, according to Tim Tolan, founder, chairman, and managing partner of The Tolan Group. “Lots of changes are on the horizon for 2025 on the hiring front, and search firms are waiting with bated breath while hiring decisions are on hold, and draft fee agreements are (still) sitting in DocuSign waiting to be signed,” he said. “Decisions are dragging, as are active search engagements, as hiring managers and leaders struggle to make hiring decisions in the environment, we are all trying to navigate.”

In the Hunt Scanlon 2024 Executive Recruiting State of the Industry Report, the numbers reflected a double-digit downturn in demand for executive recruiting, with the private equity sector being the most affected. “We’ve seen and experienced that firsthand, but we feel positive changes are on the horizon,” Mr. Tolan said.

The global NEO for the healthcare and life sciences industry is 27 percent. This figure slightly increased by one percentage point since the previous quarter and remained unchanged when compared to the same period last year.

The study also found that the global NEO for the industrials and materials industry is 26 percent. This figure remains unchanged when compared to both the previous quarter and the same period last year.

The ManpowerGroup report also shared that the global NEO for the information technology industry is 37 percent. When compared to both the previous quarter and the same time last year, this figure has increased by two percentage points.

Lastly, the global NEO for the transport, logistics, & automotive industry is 24 percent. This figure has decreased when compared to both the previous quarter and the same period last year by two and one percentage points, respectively.

Related: Predicting Talent Acquisition Trends for 2025

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media