June 2021 Labour Market Update: Bright Outlook For Europe As Hiring Grows Across All Industries

BANNER - June Labour Market
Employers have hired a growing number of people in June compared to previous months, according to an analysis of labour market data. We break down which industries in Europe are far exceeding expectations – and which sectors are growing much slower.
July 30, 2021
Future of Skills
Labour Market Policy

Employers have hired a growing number of people in June compared to previous months, according to the Adecco Group's analysis of labour market data by the IHS Markit Purchasing Managers’ Index survey (PMI)*. The IHS Markit Employment Index for Europe is back above pre-pandemic levels and keeps on climbing.

All 20 PMI sectors registered higher employment in June 2021 compared to the previous month – the first time we’ve witnessed such broad hiring growth since June 2018, data shows.

So which industries in Europe are topping the Employment Index charts and which are lagging?

Technology Equipment and Industrial Goods: hiring is on the up!

Computers, televisions, electric motors, and cement are some of the most in-demand outputs from industries on the market right now! A growing number of people are being hired to build these products, data shows. The Employment Index for these industries just keeps on rising after the pandemic dip.

PMI Employment for Tech Goods and Industrial Goods

When looking at online job postings for manufacturing, we can see a steady increase from 5,700 job ads posted per day to 9,000 job ads posted per day in the UK, Germany, the Netherlands, and France during the first half of 2021.

Approximately half of those posted job ads come from Germany, a heart of manufacturing in Europe where large companies like Siemens have their offices.

However, as we head into holiday season, we predict that on the whole, manufacturing job postings could decrease in the coming months due to lower hiring during that period of time.

Beverages & Food: employers keep their hiring steady

Output from the Beverages and Food industry increased in June compared to May, helped in part by easing COVID restrictions and the subsequent return to restaurants. A growing number of restaurants and food establishments reopen their doors and expand their operations.

An Employment Index of 50.4 in June is the lowest of the PMI industries and means that hiring is constant compared to May.

Job ads painted a similar picture: though postings have increased since the start of the year, that increase has started to slow in June.

Accomodation  Food job ads

Real Estate: hiring fairs the worst in Asia

One of the fastest hiring sectors in both Europe and Asia? Technology Equipment.

However, at the other end of the scale, one of the sectors to hire much slower than others: real estate. Real Estate had the lowest Employment Index in Asia, despite a growing level of output.

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About PMI by IHS Markit

Purchasing Managers’ Index™ (PMI™) surveys by IHS Markit are now available for over 40 countries and also for key regions including the eurozone. They are among the most closely watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends.