Monday, 21 April 2014

Firms to lay off, not hire in Q1 2013, survey says

ČTK |
12 December 2012

Prague, Dec 11 (CTK) - A greater number of Czech firms plan to fire staff in the first quarter of 2013 than hire new employees and the Manpower Labour Market Index study is the most pessimistic since Q2 2008 when the survey was launched.

The survey, whose results were released yesterday, was carried out among 750 domestic firms.

For this quarter, the firms expected stagnation.

Three percent of employers predict a rise of staff numbers and 11 percent said they would lay off staff, while 85 percent were planning no changes in this respect.

The value of the net labour market index for the first quarter next year is minus eight. Seasonally adjusted index for Q1 is minus four.

In the previous quarter the index was at zero, with 5 percent of employers expecting both a growth and a fall in staff numbers.

"The results are not optimistic, employers consider the labour market conditions very uncertain," Jaroslava Rezlerova, Manpower CEO for the Czech Republic and Slovakia, said at a press conference yesterday.

"The first-quarter outlook is traditionally the weakest," she said. Now it is influenced by the year 2012 which saw rising unemployment and falling turnovers of companies, she added.

With the index amounting to 5 percent, raw materials mining is the only segment with positive expectations.

Other branches expect the conditions to get worse. The worst outlooks are seen for transport, storage and logistics (-13 pct), followed by retail and wholesale (-11 pct).

Seasonally adjusted data are more optimistic. In five out of ten branches, employers have positive recruitment plans for the next quarter.

Employers in Prague foresee for the first quarter a relatively favourable recruitment environment with the value of the net labour market index at minus 5 percent.

Recruitment plans of employers throughout the Czech Republic show an index of minus 8 percent.

In the eastern part of the country, the situation is quite unfavourable, with the index for Q1 2013 at minus 17 percent.

A global survey shows that employers' attitudes in most labour markets indicate they are cautious about hiring new staff.

Czech labour market index (in pct)
increase decrease no change do not know net labour market index
Q3 2008 6 3 89 2 3
Q4 2008 2 1 96 1 1
Q1 2009 2 6 91 1 -4
Q2 2009 2 4 94 0 -2
Q3 2009 6 5 88 1 1
Q4 2009 3 7 87 3 -4
Q1 2010 3 9 87 1 -6
Q2 2010 4 9 86 1 -5
Q3 2010 5 4 89 2 +1
Q4 2010 6 8 84 2 -2
Q1 2011 4 9 82 5 -5
Q2 2011 7 3 87 3 4
Q3 2011 6 3 90 1 3
Q4 2011 7 6 85 2 1
Q1 2012 5 9 85 1 -4
Q2 2012 6 9 84 1 -3
Q3 2012 7 6 83 4 1
Q4 2012 5 5 87 3 0
Q1 2013 3 11 85 1 -8

Source: Manpower

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