Employment Outlook Shows Signs of Improving

Employment Outlook Shows Signs of Improving

U.S. employers are reporting a slight seasonally adjusted increase in their hiring plans between October and December 2016, according to the results of a quarterly survey conducted by staffing agency Manpower released on September 13.

The latest survey, which regularly asks more than 11,000 U.S. employers about their hiring intentions, showed that 22% of respondents anticipate increasing staff levels in the fourth quarter (Q4) of 2016, down 1% from Q3 2016 and up 1% from Q4 2015. Meanwhile, 6% of respondents said they expect to reduce their workforce, 69% said they anticipate no changes in hiring levels, and 3% said they are undecided about their hiring intentions in Q4 2016.

After taking seasonal variations into account, researchers concluded that the nationwide net employment outlook for the fourth quarter of 2016 is +18%—a figure that is three percentage points higher than the corresponding level in the previous quarter, and that matches the strongest post-recession outlook level reported in Q4 2015. The net employment outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity.

The findings also indicated that employers in all of the 13 industry sectors covered in the survey expect payrolls to increase during Q4 2016, with employers in leisure & hospitality (+30%), wholesale & retail trade (+22%), transportation & utilities (+20%), and professional & business services (+17%) reporting the strongest hiring intentions. Relatively stable hiring plans were reported by employers in the following sectors: construction (+14%), information (+14%), nondurable goods manufacturing (+15%), education & health (+13%), and other services (+10%).

Broken down by region, the survey found that net employment outlooks in all four of the U.S. regions surveyed are either improving or holding steady. The results indicated that hiring prospects in Q4 2016 are up slightly from the preceding quarter in the Northeast, the South, and the West, and are relatively stable in the Midwest. Compared to Q4 2015, hiring plans in Q4 2016 were reported to be slightly stronger in the West, and to be relatively stable in the Midwest, the Northeast, and the South.

Researchers also cited the results of a global survey of nearly 59,000 employers in 43 countries. The survey showed that staffing levels are expected to grow by varying degrees in 42 of the 43 countries covered in Q4 2016, with only employers in Brazil saying they expect payrolls to decline in the October-December time frame. Generally, researchers observed that uncertainty associated with the slowdown of the global economy, the Brexit referendum, and continued financial market volatility appears to have had little impact on employer hiring confidence.

From Benefit Trends Newsletter, Volume 59, Issue 10

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2016 Liberty Publishing, Inc. All rights reserved.

Tech Executives Express Optimism about Revenue and Employment Growth

Tech Executives Express Optimism about Revenue and Employment Growth

While technology executives report that they are ramping up deployment of automation and machine learning across several functions of their company, they also claim they are planning to hire more people over the next several years, according to the results of a survey of U.S. technology CEOs by accountancy firm KPMG.

Released on July 11, the findings of a survey of 138 U.S. technology industry chief executives from internet, hardware, software, cloud, and IT services companies showed that around three-quarters of the respondents believe that automation and machine learning are likely to replace at least 5% of their manufacturing, technology, sales, and marketing workforce over the next three years. At the same time, more than half (55%) of respondents said they expect their company’s headcount to grow at least 6%.

Almost 60% of the CEOs surveyed said they expect annual revenue growth for their organization over the next three years of between 2% and 5%, while 17% said they anticipate growth of between 5% and 10%. The findings also indicated that 97% of the CEOs surveyed are confident about U.S. revenue growth prospects over the next three years, and that nearly 90% are confident about global growth as well.

When asked about their strategic priorities in the coming 36 months, the top response of the CEOs surveyed was digitization of their business, followed by a stronger client focus, implementing disruptive technology, minimizing cyber security risk, and talent development.

The survey also found that almost half of the respondents describe their approach to innovation as accelerated. When asked how they plan to accelerate the execution of their strategies, 80% of the CEOs surveyed said they are using disruptive technologies to improve products and services, 60% said they are hiring new talent, and 49% said they are forming new partnerships and alliances. The findings further indicated that around 80% of the executives polled see growth through partnerships or collaboration with other companies as the way to drive shareholder value for the next three years.

In addition, the results revealed that the leading concerns of the tech CEOs surveyed are product relevancy three years from now, the impact of global economic forces on their business, and how millennials and their differing wants/needs will change their business. When asked about risk, the CEOs polled said they are most concerned about cyber security, regulatory risk, and reputational risk. However, 90% of the respondents agreed that the need for security is generating innovation in products and services.

From Benefit Trends Newsletter, Volume 59, Issue 8

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2016 Liberty Publishing, Inc. All rights reserved.