57% of companies with more than 100 employees plan to hire executives in the second quarter, compared to 59% the previous quarter according to the latest barometer of the Association for the employment of executives
The healthy health of the executive employment market seems to be falling. According to the latest Apec barometer published this Friday, April 19, 57% of the companies surveyed planned to hire staff at the executive level in the second quarter, against 59% in the first quarter. The slowdown in the French economy and the bad signs of the global economy have clouded the prospects for hiring in the private sector.
More brutal braking for Germany and Italy
In its latest forecasts, the French Observatory of Economic Conditions (OFCE) indicates that the growth of French gross domestic product (GDP) should reach 1.5% in 2019, against 1.6% in 2018 and 2.3% in 2017 In the euro zone, the braking is much more brutal for some big powers. OFCE economists expect growth to reach 0.9% for Germany in 2019 against 1.5% in 2018. Italy, which entered recession at the end of 2018, is still expected to face serious difficulties before rebound (0.1% forecast in 2019 and 0.6% in 2020).
Recruitments down in the industry
The average barometer of the association masks disparities between sectors. The industry should experience a significant decrease between April and June. Thus, the proportion of new hires in industrial firms with more than 100 employees would rise from 69% to 63% between the first and second quarters of this year. The erosion of the business climate has had an impact on business prospects.
On the construction side, while intentions to recruit remain at high levels around 65%, the share of companies hiring a manager has clearly dropped between the third quarter of 2018 and the first quarter of 2019, from 66% to 54%. And the phenomenon of decline is far from being limited to industry and construction. A net decrease is also visible in the medico-social or the banks and insurance.
In contrast, the engineering and research and development (R & D) sector experienced an improvement in intentions from 85% to 87% between the first and second quarters. Unsurprisingly, while the IT industry is showing some signs of slowing down, it remains at very high levels.
Nearly nine companies with more than 100 out of ten employees (in IT) have recruited at least one executive in the first quarter of 2019. The forecasts also reflect the optimism that characterizes the sector with 92% of companies with plans to recruit executives in the second quarter of 2019, notes Apec.
Retirements to predict
The main factor advanced by companies to recruit in the second quarter is related to turnover or retirement. 54% of managers surveyed mentioned this reason against 51% for the second quarter of 2019. Then come the development of the business for 23% of respondents or internal reorganization for 16% of companies. The proportion that mentions second-quarter hires to develop new business is down 4 points compared to the second quarter of 2018 (27% versus 23%). The slump in the French economy has clearly had an impact on business development opportunities.
Highly wanted salespeople
For the second quarter of 2019, 44% of recruiting companies planned to hire staff in the commercial function. Companies also express high needs in management, finance and administration (39%). “In connection with the digital and digital transformations in progress and common to all sectors, computer executives remain privileged profiles for more than 3 out of 10 companies that plan to recruit,” summarize the authors of the barometer.
Tensions slightly down
The slowdown of the economy has also had consequences on the labor market tensions of executives. Thus, job offers, distributed through the executive association, received an average of 33 applications in the third quarter of 2018 compared to 29 in the first quarter of the same year. Despite this increase in applications by job offer, tensions remain for certain trades.
“64% of recruitments finalized following a job offer released in the third quarter of 2018 are considered difficult by recruiters, compared to 66% a year earlier.” Computer jobs stand out with a sharp increase in feelings of tension (+9 points), placing the function at the top of the ranking when it was in third position a year earlier.The pool of candidates remains too low in light of the changing needs of companies in terms of quantity and quality “, says Apec.