30% of Hungarian companies plan to increase their workforce in the third quarter

Thirty percent of national employers expect an increase in their current workforce in the third quarter of 2022, while 17% expect a reduction. Meanwhile, companies continue to face hiring challenges due to talent shortages, according to ManpowerGroup’s Labor Market Forecast.

ManpowerGroup conducted the quarterly survey of more than 41,000 employers in 40 countries, in which a representative sample of 520 Hungarian employers were asked about their hiring intentions in the third quarter.

As in the previous quarter, the net employment indicator reached an average of +13%, an increase of five percentage points compared to the same period in 2021. Employers in Western Transdanubia indicated a record intention to employ 39%.

There are significant differences between sectors, with the IT, technology, telecommunications and media sectors being the most competitive: 42% of respondents plan to increase their workforce in the third quarter. On the other hand, the fields of education, health, social action and administration saw their lowest value since the fourth quarter of 2013, with an indicator of -8.

“It is optimistic that the intention to increase the workforce has stabilized, maintaining the more restrained forecast in the second quarter. However, the lack of qualified workers places a heavy burden on companies,” said Tamás Fehér, Director General of ManpowerGroup Hungary “The shortage of talent affects three quarters of companies, which is extremely high.”

The labor crisis

According to the ManpowerGroup report, three in four companies (75%) are experiencing talent shortages and hiring difficulties, a 16-year high. Some 86% of employers surveyed in the banking, finance, insurance and real estate sectors are struggling with a talent shortage, followed by wholesale and retail trade (82%) and manufacturing (80%).

Some of the hard skills and human strengths expected by employers include accountability and self-discipline, resilience and adaptability, and skills related to collaboration and teamwork.

“While it’s encouraging to see that employers are intent on hiring workers, it’s increasingly difficult for them to find the talent they need,” said Jonas Prising, president and CEO of ManpowerGroup. “In addition to the skills gap challenge, employers face wage inflation and competition for workers as many change industries altogether to better suit their lifestyles.”

Talent shortages resulting from the pandemic and conflict in Ukraine are beginning to impact the supply chain and create greater uncertainty in the economic outlook, Pricing said.

“The need for organizations like ours to focus on retraining and building talent at scale has never been greater,” he added.

Laura T. Thrasher