Cooling Job Market, Hot Talent Pipelines

Employers brace for potential economic challenges in the third quarter of 2023, as indicated by the latest ManpowerGroup Employment Outlook Survey, which reveals cooling hiring plans for the summer season. Nevertheless, despite adopting more conservative hiring practices, talent acquisition professionals have identified a silver lining: an excellent opportunity to build robust talent pipelines.

The survey, which covered nearly 39,000 employers in 41 countries, indicated that business leaders from 26 countries reported a 4% decline in hiring outlook compared to the previous year. Notably, of North America, Mexico displayed the strongest hiring outlook at +36%, nevertheless, the expectations were slightly lower than in the corresponding period last year. 

“This data suggests employers are planning more measured hiring for the quarter ahead as they navigate a range of local and macro level challenges from supply constraints to uneven consumer confidence and rising inflation,” says Jonas Prising, Chairman and CEO, Manpower Group. However, the survey also highlighted that attracting and retaining critical talent remains a top priority for businesses worldwide, with hiring efforts focused on in-demand roles.

Digital roles, especially within the IT industry, remain the primary driving force behind the increasing global demand for hiring. In Mexico, the growing trend of nearshoring has significantly boosted the demand for IT jobs as the country attempts to position itself as a competitive regional technology hub. 

“It is estimated that nearshoring will generate close to 150,000 jobs in the technology sector alone in Mexico. According to our LinkedIn 2023 Jobs on the Rise report for Mexico, the top roles that coincide with manufacturing are site reliability engineer, data engineer, JavaScript developer, cloud engineer and logistics specialist,” says Monica French, Head of New Business Hispanic America, LinkedIn. 

Amid the challenges, talent acquisition professionals are seizing this opportune moment to prioritize talent pipeline development. Companies are proactively advancing their technology stacks and adopting improved recruitment strategies, all in preparation for future growth. “By emphasizing training, education and seeking guidance from specialized firms to enhance workforce talent, organizations can effectively bridge skill gaps and foster increased productivity, profitability and overall success,” says Nelson Amparán, CEO, Academia Global. 

With talent acquisition professionals laying the groundwork for a resilient workforce, businesses are poised to face any challenges that may arise on the road to recovery.