ManpowerGroup: 33% of companies plan to hire, 18% expect redundancies in Q2 2025

According to the latest ManpowerGroup Employment Outlook Survey, 33% of companies globally plan to expand their workforce in the second quarter of 2025, while 18% anticipate redundancies. The data highlights regional differences, with Europe and the Middle East (EME) reporting a Net Employment Outlook (NEO) of 20%, making it the region with the lowest hiring expectations.

Employment Trends in Europe

The European labor market remains uncertain, with hiring intentions varying by country and industry. Some businesses plan to recruit to address skill shortages, while others anticipate downsizing due to economic challenges and restructuring efforts.

Across Europe, the most optimistic hiring markets include:
• Germany, where technology, engineering, and finance continue to drive demand for skilled professionals.
• The United Kingdom, where healthcare and logistics remain strong employment sectors.
• Poland and the Netherlands, which report stable hiring expectations, particularly in manufacturing and IT services.

Conversely, southern European markets, including Spain and Italy, show weaker hiring confidence, with economic uncertainty and slower job growth affecting recruitment plans.

Sector-Specific Insights

The survey shows that the IT sector continues to lead hiring demand in Europe, followed by finance, life sciences, and renewable energy. However, traditional manufacturing and retail sectors face moderate to declining recruitment plans, with businesses adjusting to changing consumer behavior and automation trends.

Challenges and Workforce Adjustments

Employers in Europe cite rising labor costs, evolving regulations, and economic fluctuations as key factors influencing their workforce planning. Companies are also adapting to automation and digital transformation, with some sectors experiencing job displacement while others create new roles requiring specialized skills.

Despite these challenges, the European job market remains resilient in certain industries, and demand for highly skilled workers continues to grow. Reskilling and upskilling initiatives are becoming increasingly important as businesses seek to fill skill gaps and adapt to labor market shifts.

Outlook for Q2 2025

While hiring intentions remain positive overall, employment growth in Europe is expected to remain moderate, with businesses taking a cautious approach to workforce expansion. The coming months will likely see targeted hiring in high-demand sectors alongside continued restructuring and workforce optimization in industries facing economic pressures.

Source: ManpowerGroup