EMEA Labor Market News & Trends
Q2 2024
The labor market remains tight, with unemployment rates hovering around 6%, well below pre-pandemic levels [1].
However, there are signs of a slight softening, with job vacancy rates dipping from their highs and economic growth projected to slow [1, 2].
The skills gap continues to be a challenge, with employers struggling to find qualified candidates for open positions [5].
The trend of worker resignations, known as the Great Resignation, persists, with employees seeking better wages, benefits, and work-life balance [5].
Focus on wage growth: As inflation subsides, real wages are expected to rise, potentially leading to a more balanced labor market [2].
Rise of remote work: Flexible work arrangements remain a priority for many workers, shaping the future of work in the region [4].
The EMEA talent landscape in 2024 is a double-edged sword. While a tight labor market allows us to attract top performers, it also presents significant challenges in filling critical roles. We need to be creative in attracting and retaining talent, focusing on competitive compensation, fostering a strong employer brand, and offering flexible work arrangements that cater to the evolving needs of today's workforce."
Switzerland: Hundreds of workers at Google's Zurich office staged a walkout last week after the company laid off 200 workers. Google announced “plans to cut 12,000 jobs around the world” in January. (Reuters)
United Kingdom: According to news reports, the British government has reached an agreement on a pay deal with healthcare workers, following “months of strikes" in the National Health Service. Meanwhile, though, UK Passport Office workers are set to strike for five weeks after “an escalation of a dispute over jobs, pay and conditions.” The strike is set to include more than 1,000 workers in England, Scotland, and Wales, and is scheduled to take place April 3 to May 5. (Reuters, Guardian)
According to Envoy Global's 8th annual Immigration Trends Report, “foreign employees on visa sponsorship were negatively impacted by layoffs and hiring freezes in 2022, but they remain highly sought after by US employers.” Envoy's report includes survey responses from more than 500 HR professionals who specialize in corporate immigration and global mobility for companies across the US.
Demand for foreign workers is strong:
87% of employers surveyed said they are currently recruiting and hiring foreign national employees in the US.
Although some companies are pausing hiring or even laying off foreign workers, some companies are benefiting by recruiting foreign talent who were impacted by layoffs.
In 2022, 78% of companies with foreign national employees instituted a hiring freeze, and 51% of companies laid off foreign national employees.
But 89% of companies surveyed said they “hired one or more foreign national employees who were previously laid off by another company in the last six months.”
Employer demand for foreign talent is higher in early 2023 than it was in early 2022, with 71% saying they are “recruiting more foreign nationals in Q1 2023 than during the same period last year.”
Immigration barriers are impacting decision-making:
The survey found that “immigration barriers in the US are leading employers to relocate foreign employees overseas and outsource jobs.”
81% of companies said they “transferred foreign national employees to an office abroad because of visa-related issues in the US in the last year.”
86% of companies said they “hired employees outside the US for roles originally intended to be based inside the country because of visa-related uncertainties.”
93% of companies said they "expect to turn to nearshoring or offshoring to fill positions abroad due to immigration barriers and labor shortages in the US.”
Some employers remain frustrated with immigration policies:
84% of respondents said they “approve of the Biden administration's handling of employment-based immigration,” but 51 % of respondents “feel the immigration process in the US is more difficult than in previous years.”
When asked about the “primary barrier for your company when it comes to hiring and sponsoring foreign national employees in the US,” respondents cited the limited number of H-1B visas available (47%); slow and uncertain government processing (13%); government regulations and paperwork (15%); costs related to sponsoring a foreign national employee (4%); and ‘all of the above’ (21%)."
Read more via Envoy
