30.3% of surveyed companies stated that the number of employees increased in Q3 of 2021, compared to Q2 of 2021. For the majority of respondents (66%) the number of employees was unchanged, while 3.7% reported a decrease, - according to the report on Business Climate published by BAG Index.
Across all sectors covered, the manufacturing sector was the one with the largest share of the surveyed companies (40%) claiming that the number of employees had increased in Q3 of 2021, compared to Q2 of 2021. This could be due to the rise in demand for production experienced by the majority of companies (53.3% of surveyed companies recorded an increase in demand for their production in Q3 of 2021).
As of the report, 21.3% of the surveyed companies stated that in Q4 of 2021, compared to Q3 of 2021, the number of employees increased, while 3.7% recorded a decrease. The majority of companies (75%) stated that their number of employees had not changed.
A significant share of respondents in the construction and manufacturing sectors stated that the number of employees had increased in Q4 of 2021, compared to Q3 of 2021. This could be due to rising sales in both sectors in Q4 of 2020.
25% of the surveyed companies expect that in Q1 2022, compared to Q4 2021, the number of employees will increase, while 3.7% expect a decline. The majority of companies (71.3%) does not expect change in the number of their employees in this period.
The most optimistic outlook regarding employment was found in the construction sector. 50% of the respondents in the construction sector stated that they expect an increase in the number of employees in Q1 2022, compared to Q4 2021. This could be explained by the optimistic outlook regarding sales in this sector.
The largest share of respondents in the trade, manufacturing and service sectors expect that thenumber of employees will not change in Q1 of 2022, compared to Q4 of 2021 (70%, 78.6% and 75.6%, respectively).
To sum up, it could be argued that the construction sector has been experiencing positive dynamics regarding employment since Q1 of 2021. In Q1 of 2021, only 13% of surveyed companies recorded an increase in their number of employees, while in Q4 of 2021 this indicator stood at 50% and a similar rate is expected in Q1 of 2022.
In the manufacturing and service sectors, like in the construction sector, the share of companies to have recorded an increase in their number of employees has been rising since Q1 of 2021. However, in Q4 of 2021, compared to the previous quarter, the relevant indicators decreased by 7 and 25 percentage points, respectively. It is expected that in Q1 of 2022, fewer companies will increase the number of employees.
In the trade sector, the share of companies to record an increase in number of employees during 2021 was stable, unlike other sectors (in Q2-Q4 2021, 20-24% of companies recorded an increase in the number of employees).
