Friday, December 14, 2018
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2018 Q3 Americas Quarterly Market Report

ManpowerGroup Solutions provides market trends as well as insight into the Americas metro area contingent workforces as they evolves each quarter. Featured in this second quarter of 2018 are Paid Sick Leave and Overtime Requirements, Legislation Banning Salary History, Marijuana Laws, Finance and Banking candidate availability, Technology candidate availability, Telecommunications candidate availability, and Manufacturing candidate availability for the United States, all by State. Employment outlook and candidate availability for Canadian  and Mexican Markets.

Download the complete Q3 2018 Americas Quarterly Market Report.

Also included are regional and micro level labor statistics, like the unemployment and labor force participation rates. Along with hourly pay by job title, for over 50 metro markets within the United States, Canada and Mexico.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

But as the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - putting the power to gain a quantifiable advantage in their hands.

Download the complete Q3 2018 Americas Quarterly Market Report.

 

2018 Q3 European Quarterly Market Report

TAPFIN provides market trends as well as insight into the European contingent workforce as it evolves across Europe each quarter. Featured in this third quarter of 2018 are Global Trends, European Employment Outlook statistics and Legal and Regulatory updates in countries throughout Europe as well as regional and micro level labor statistics at a country level across a variety of metrics.

Download the complete 2018 Q3 European Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

But as the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - putting the power to gain a quantifiable advantage in their hands.

Download the complete 2018 Q3 European Quarterly Market Report.

2018 Q3 Global Quarterly Market Report

ManpowerGroup Solutions provides market trends as well as insight into the global contingent workforce as it evolves each quarter. Featured in this third quarter of 2018 are Global Workforce Trends and Global Workforce Planning as well as regional labor statistics and overviews.

Download the complete Q3 2018 Global Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

As the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - giving organizations a quantifiable advantage.

Download the complete Q3 2018 Global Quarterly Market Report.

 

Salary History Ban: Legislative Changes and Employer Strategy

Challenges Created by Evolving Salary History Ban Regulations

Salary History Ban

The legislation prohibiting employers from inquiring about current or historical candidate compensation was originally designed to reduce the perpetuation of the gender wage gap. Recently a judge ruled to reverse legislation restricting the salary history questions based on the First Amendment rights of Philadelphia employers. While similar legislation is being adopted by states and regions throughout the United States it seems that national legislation banning salary history may be a few years away.

More employers are reviewing policies around previous salary information and salary history questions during the interview and onboarding process. This part of many hiring processes is coming into focus as more areas pass legislation banning these and similar questions from employers hiring and onboarding procedures. Organizations who operate in one of these areas affected by the salary history ban may opt to make their changes company wide rather than having specific policies for each location.

CURRENT REGULATIONS

May employers ask about salary history? (State and Local):

California

No. Unless offered voluntarily
and without prompting,
employers may not seek an
applicant’s salary history or
rely on it to determine whether
to offer employment or what
salary to offer. Prior salary
will not justify disparities in
compensation
San Francisco (Eff. 7/1/2018
penalties 7/1/2019): Same
as above, but also may not
retaliate due to failure to
disclose salary history; may
not release salary history
of current employee to
prospective employer without
written consent (with limited
exceptions); and must post
notice of rights.
May discuss
compensation that applicant
would forego in order to take
the new job (e.g. unvested
equity, deferred comp or bonus)

Connecticut

State law (Eff. 1/1/2019): No,
unless a prospective employee
has voluntarily disclosed
such information, or unless
the request is pursuant to
any federal or state law that
specifically authorizes the
disclosure or verification.
The law does not prohibit an
employer from inquiring about
components of a prospective
employee’s compensation
structure, so long as employer
does not inquire about the
value of the elements of such
compensation structure

Delaware

No, employers cannot seek
the compensation history of
an applicant or seek the same
from the applicant’s current
or prior employer prior to
offer acceptance (after offer
acceptance, may request only
for purposes of confirming
compensation history).
Employers cannot screen
an applicant based on their
compensation history, including
requiring that compensation
history meets minimum or
maximum criteria

Hawaii

Pending (Eff. 1/1/2019): No.
Unless offered voluntarily and
without prompting, employers
may not inquire about, search
public records for, or rely on
salary history of applicants in
the hiring process

Massachusetts

No, cannot seek salary history
from a prospective employee
or current or former employer
before an offer. If a prospective
employee has voluntarily
disclosed salary history
information, the employer can
confirm prior wages or salary or
permit a prospective employee
to confirm prior wages or salary.
Cannot require that prior wage
or salary history meet certain
criteria. Prior wages are not a
defense to equal pay complaint

Michigan

Yes. State law prohibits local
jurisdictions from implementing
salary history bans

New York

New York state: Currently not
addressed
New York City: No, employers
or their agents cannot seek
the compensation history of an
applicant, seek the same from
the applicant’s current or prior
employer, or conduct public
records review to determine
prior salary. Cannot rely on the
salary history of an applicant
in determining the salary,
benefits or other compensation
for such applicant during
the hiring process, including
the negotiation of a contract
unless disclosed voluntarily and
without prompting. May discuss
compensation that applicant
would forego in order to take
the new job (e.g. unvested
equity, deferred comp or bonus)
Albany County: No, cannot
request that an applicant
disclose his/her wage or
salary history or seek the
same from applicant’s current
or former employer; cannot
screen applicants based
on wage history (inclusive
of compensation, salary or
other benefits); may confirm
prior wages, with written
authorization from applicant,
after making an offer that
includes compensation
Westchester County: No,
cannot rely upon wage history
to determine wages or require
as a condition of interview
or offer that a prospective
employee disclose wage history
information. May rely on salary
history when it is voluntarily
provided by an applicant to
support a wage higher than the
wage offered by the employer

North Carolina

Currently not addressed, but
there is pending legislation

Oregon

No, cannot seek salary history
from applicant or prior employer
before offer. Can confirm
prior compensation after
offer that includes amount of
compensation, with written
authorization of prospective
employee. (Eff.10/6/2017, no
private right of action until
2024)
Pending (eff. 1/1/2019): Cannot
screen job applicants based on
current or past compensation, or
determine compensation based
on current or past compensation

Pennsylvania

Philadelphia only (partially
enjoined by legal challenge):
Employers cannot rely on wage
history in determining the wages
for applicants at any stage
in the employment process,
unless the applicant knowingly
and willingly discloses salary
history.
The provision of the
Philadelphia law that prohibited
inquiries about wage history
was enjoined by a court on First
Amendment grounds

Puerto Rico

No, cannot seek salary history
from a prospective employee
before an offer. If a prospective
employee has voluntarily
disclosed salary history
information, the employer can
confirm prior wages or salary or
permit a prospective employee
to confirm prior wages or salary

Vermont

No, employers may not
inquire about compensation
history. Employers cannot
screen an applicant based on
their compensation history,
including requiring that
compensation history meets
minimum or maximum criteria.
If a prospective employee
voluntarily discloses the
information, an employer may
confirm it after making an offer
with compensation

Washington

Salary history inquiries are
not banned but an employee’s
salary history is not a defense to
an equal pay claim

Wisconsin

Yes. State law prohibits local
jurisdictions from implementing
salary history bans

Last updated July 2018

Impact on Employers

Employer Positives
  • Employers may still ask the candidates target pay range to gauge if the candidate is the right fit for the roles pay range.
  • Asking this question early in the interview process can help Employers determine pay disparities and reduce time to fill positions
Employer Negatives
  • Even if employers can access salary history information the heightened awareness of the Salary History Ban means that all employers nationwide will be subject to added scrutiny and must be able to show evidence to support decision to pay workers with similar roles and responsibilities different wages.

Whether is a company wide or regional strategy, addressing the salary history question and how to handle it is an important step when updating company policies. The desired effect of this legislation is to eliminate the perpetuation of both the gender and minority wage gaps within similar job titles at organizations over time. As a result of these laws, legislators expect employees to more freely discuss their compensation and pay the same rate for similar work.

To remain in compliance, and with the increase in implementation of remote work options, it's important for employers to consider both the regulations of their location as well as the location of all remote employees. For example, an organization based in Denver, Colorado may not be subject to any laws prohibiting questions about salary history, but if they are interviewing candidates who will work remotely from San Jose, California or Boston, Massachusetts then the restrictions in those cities and states would apply to their hiring procedure for those specific candidates.

2018 Q2 Americas Quarterly Market Report

ManpowerGroup Solutions provides market trends as well as insight into the Americas metro area contingent workforces as they evolves each quarter. Featured in this second quarter of 2018 are Paid Sick Leave and Overtime Requirements, Legislation Banning Salary History, Marijuana Laws, Finance and Banking candidate availability, Technology candidate availability, Telecommunications candidate availability, and Manufacturing candidate availability for the United States, all by State. Employment outlook and candidate availability for Canadian  and Mexican Markets.

Download the complete Q2 2018 Americas Quarterly Market Report.

Also included are regional and micro level labor statistics, like the unemployment and labor force participation rates. Along with hourly pay by job title, for over 50 metro markets within the United States, Canada and Mexico.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

But as the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - putting the power to gain a quantifiable advantage in their hands.

Download the complete Q2 2018 Americas Quarterly Market Report.

2018 Talent Shortage Survey

Solving the Talent Shortage

Build, Buy, Borrow and Bridge

In the digital age, technology is transforming how work gets done, creating new roles that require new skills. At the same time, organizations are increasing headcount in 42 of the 43 countries and territories that we survey and many markets are nearing full employment. As a result, talent shortages are more acute than they have been for decades.

TO UNDERSTAND THE IMPACT ON COMPANIES, WE ASKED 39,195 EMPLOYERS IN 43 COUNTRIES AND TERRITORIES:

• How much difficulty are you having filling roles compared to last year?
• Which skills – hard skills and human strengths – are the most difficult
to find, and why?
• What are you doing to solve talent shortages?

Download the Full Whitepaper

We found that more employers than ever are struggling to fill open jobs. Forty-five percent say they can’t find the skills they need, and for large organizations (250+ employees) it’s even higher, with 67% reporting talent shortages in 2018.

Visit the 2018 Talent Shortage Survey Microsite

Every industry is impacted. From manufacturing to mining, transport to trade, employers cannot find the people they need with the right blend of technical skills and human strengths. Keeping pace in this Skills Revolution demands faster, more targeted upskilling and talent management than ever before. It’s time for a new approach to the big talent problem: it’s time to build, buy, borrow and bridge to ensure we have the in-demand skills for today and tomorrow.

As global workforce experts, we find work for millions of people every year across 80 countries and territories, helping hundreds of thousands of companies attract, assess, develop and retain right-skilled workers. This report combines our unique insight with 12 years of data from our global talent shortage survey, the largest human capital study of its kind. It provides practical solutions to help employers understand the skills they need, identify the greatest potential and find the best talent for the digital age.

Download the Global Infographic

2018_TSS_Infographics-Global

 

2018 Q2 European Quarterly Market Report

TAPFIN provides market trends as well as insight into the European contingent workforce as it evolves across Europe each quarter. Featured in this second quarter of 2018 are Global Trends, European Employment Outlook statistics and Legal and Regulatory updates in countries throughout Europe as well as regional and micro level labor statistics at a country level across a variety of metrics.

Download the complete 2018 Q2 European Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

But as the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - putting the power to gain a quantifiable advantage in their hands.

Download the complete 2018 Q2 European Quarterly Market Report.

2018 Q2 Global Quarterly Market Report

ManpowerGroup Solutions provides market trends as well as insight into the global contingent workforce as it evolves each quarter. Featured in this second quarter of 2018 are Global Workforce Trends, Skills Demand by Sector Category, and Best Practices Emerging in Workforce Strategy as well as regional labor statistics and overviews.

Download the complete Q2 2018 Global Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

As the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - giving organizations a quantifiable advantage.

Download the complete Q2 2018 Global Quarterly Market Report.

Skills Shortage Continues to Negatively Impact American Employers

Transportation, construction, retail trade, professional and business services, and manufacturing of durable and nondurable goods are among the industries most impacted by the skills shortage throughout the United States. While the Great Recession took millions of American jobs in a matter of months, regrowth of the economy is in its ninth year and despite the adding of jobs, it’s the labor pool that is now shrinking. It could potentially be decades before the labor pool recovers. This is due to the fact that another baby boomer retires every nine seconds and finding skilled workers has become increasingly difficult.

Unemployment is currently sitting at a 17-year-low of 4.1%, which is great news for workers based on the more robust wage growth projected to continue through the end of this year. The problem is that there simply are not enough workers to employ to meet the production demands of the U.S. demand for goods and services. From 2017 to 2027, the nation faces a potential shortage of 8.2 million workers, based on analysis from Thomas Lee, head of research at Fundstrat Global Advisors. This would be the most substantial shortfall in 50 years or more, based on percentage of the population.

The Q2 2018 ManpowerGroup Employment Outlook Survey found that employers expect to increase payrolls primarily in the Leisure & Hospitality, Transportation & Utilities, Professional & Business Services, Wholesale & Retail Trade, and Durable Goods Manufacturing industries. In Q1 2018 hiring intentions in the Transportation & Utilities sector nationwide were the strongest reported since the first quarter of 1982 when the survey started reporting seasonally adjusted figures. At the national level, employers in the Construction and the Durable Goods Manufacturing sectors report the strongest Outlooks for more than a decade. Employers in the Professional & Business Services sector report the strongest national Outlook since the sector was first analyzed nine years ago.

While these hiring intentions are great news for workers, skilled trade workers, drivers, laborers, accounting & finance staff, engineers, technicians and, restaurant & hotel staff continue to be some of the most difficult positions to fill, based on the most recent ManpowerGroup Talent Shortage Survey. The problem isn’t simply lack of skills, but lack of workers altogether. The labor force participation rate, a measure of the percentage of the adult population that is working or actively seeking employment, has fallen to 63% from 67% in 2000.

This labor shortage should not have come as surprise but the effects were delayed by the 2007-2009 recession, which created an employment slump that was longer than usual. During this time labor was inexpensive and abundant as the jobless rate was above 5% for over seven years. Many workers were forced to delay retirement due to loss of investments and retirement savings during the stock downturn. Employers did not have any incentive to invest in upgrading machinery or processing to boost productivity to prepare for tighter labor markets to come.

Labor is still fairly cost effective with average hourly earnings rising by an annual pace of below 3% for over eight years. Low wages are also preserved by the fact that few people are quitting their jobs to accept higher paid positions. This supports theories that there may not be a labor shortage, however, while some industries may not be affected as severely, while others are in dire need of workers. Simply taking an average across every industry in the nation cannot show where the shortages are being most strongly felt.

Many large retailers and food service organizations are announcing wage increases for customer facing positions to encourage an increase in applications to staff both existing and new stores. And while minimum wage is on the rise throughout the United States, in some areas to as much as $15 per hour based on new legislature that is beginning to take effect, most of the raises being referred to are for above-minimum-wage positions. For example, the average compensations for carpenters in Houston, Texas has increase 57% in just three years, based on wage surveys. While the average wage gains may seem meager, nonsupervisory and production workers who make up roughly 80% of the workforce are experiencing accelerated wage gains.

“We’re seeing solid, demand-fueled growth across the U.S. as the economy continues to strengthen and the labor market tightens at pace,” said Becky Frankiewicz, president of ManpowerGroup North America. "The competition for skilled talent is set to heat up and a just-in-time approach isn't always getting employers the skills they need when they need them. Now is the time to invest in people by upskilling America’s workers. We should also seek untapped talent sources with adjacent skillsets that can adapt to fill in-demand positions. At ManpowerGroup we accelerate people's careers offering skills development to help people access in-demand opportunities. Our MyPath™ offering has provided 120,000 U.S. associates with advice and opportunities to increase their skills and earnings. Upskilling the workforce and building employability will be the solution to the Skills Revolution.”

Employers are already combating this lack of skills availability by identifying the current and potential skills shortages in their own businesses. When opportunities to retrain and upskill existing staff are recognized and anticipated investment in training and the development of new skills can help to augment the skills gap without losing staff that have valuable industry experience as well as seniority as well as a positive relationship with their employer.

As the skilled workforce is projected to shrink over the next decade a focus on upskilling the labor force as many experienced workers retire over the next decade will decrease the skills gap and the effects of the talent shortage. However, manufacturing will likely experience a worker shortage of approximately two million by 2025, based on research from the Manufacturing Institute. Some organizations are having a hard time, even today, due to lack of available labor - both skilled and unskilled labor. The transportation industry has an existing shortage of some 51,000 truck drivers, a number expected to triple by 2026, per the American Trucking Associations. While construction continues to struggle to find enough skilled labor to complete jobs, labor costs and an availability are cited as problems by 82% of builders, according to the National Association of Homebuilders. This even as the pace of new home construction remains more than 10% below the normal rate.

As the US labor market tightens, employers report sustained demand for skilled workers, something a 3% increase in the working-age population by 2030 will not remedy. Upskilling the existing workforce while providing training and skilled trade education for the emerging workforce will be crucial in the skills revolution set to take place over the next couple decades in the United States. Finding the skills needed by employers will be the main concern for organization in the future as positions require more highly skilled workers and credentials for tasks such as commercial driving and subcontractors for construction. Without these skills, the labor force could swell and the United States will still suffer perceived talent shortages due to the lack of skills, not simply the availability of working age population. Efforts to engage existing resources and train employees who are currently working to complete legacy processes in encouraged. This practice allows employers to transition employees who have been upskilled for new processes while retaining their experience and internal knowledge of the business.

H-1B Visa Reach Cap within One Week for the Sixth Straight Year

The filing period for H-1B visas - temporary work visas for highly skilled foreign workers - began Monday, April 2nd, 2018, for the upcoming 2019 federal fiscal year. The H-1B program allows companies in the United States to temporarily employ foreign workers in occupations that require the theoretical and practical application of a body of highly specialized knowledge and a bachelor’s degree or higher in the specific specialty, or its equivalent. H-1B specialty occupations may include fields such as science, engineering and information technology.

The number of H-1B visas is capped at 85,000 (65,000 Bachelor's and 20,000 Master's degree holding applicants.) This year the cap was reached in the first week - for the sixth year in a row.

In February an announcement was made that USCIS would target H-1B petitions for third-party worksites. Later in March US Citizenship and Immigration Services reported it would suspend premium processing of H-1B petitions for the 2019 fiscal year.

Envoy Global, the maker of a platform to assist in securing global work permits, released a survey in February showing that 44% of employers say US visa applications have become more difficult, up from 35% in the previous year. It said 61% cited increased complexity as a primary factor increasing difficulty. The survey included 401 HR professionals from the US.

Additionally, recent report suggest that Indian IT companies in particular have dramatically reduced their H-1B visa filings. Other US based media state that the evidence suggests that the market demand for H-1B visas is falling. Searches related to the H-1B visa on one popular job posting websites are also decreasing for the thirteenth consecutive month indicating a trend rather than a temporary shift in the preferences of job seekers.

This difficulty and lack of interested related to the H-1B visa is leaving corporations to continue this struggle with a paradoxical labor market. Approximately 548,000 tech jobs remain open while unemployment in the technology sector hovers below full employment levels. There are many jobs open, but not enough workers to fill them.

If not to the United States then where is the talent going? Based on applications on a major job posting website, in 2018 it appears that the most popular destination for job seekers who conducted H-1B visa searches is Canada. A fast track program which allows highly skilled technology workers to enter Canada on a temporary visa is as little as two weeks is likely an incentive when compared to the process and timeline associated with the H-1B visa to enter the United States. How are employers able to augment their workforces despite the annual maximum of 65,000 H-1B visas set by congress for this year’s applications? We may be seeing more SOW (Statement of Work) engagements and an increase in the hiring of gig or informal workers to meet the demand for highly-skilled workers.

Despite reports of decreased interest in the H-1B visa program, applications for the visa still hit the 65,000 Bachelor’s Cap within just five days, confirms the U.S. Citizenship and Immigration Services (USCIS). Based on data from the Pew Research Center the top ten metro areas for H-1B Visa Approvals between 2010 and 2016 include:

  • New York – Newark – New Jersey, NY-NJ-PA [247,900]
  • Dallas – Fort Worth – Arlington, TX [74,000]
  • Washington – Arlington – Alexandria, DC-VA-MD-WV [64,800]
  • Boston – Cambridge – Newton, MA-NH [38,300]
  • College Station – Bryan, TX [37,800]
  • Philadelphia – Camden – Wilmington, PA-NJ-DE-MD [34,300]
  • Chicago – Naperville – Elgin, IL-IN-WI [29,900]
  • Houston – The Woodlands – Sugar Land, TX [28,900]
  • Atlanta – Sandy Springs – Roswell, GA [28,500]
  • San Jose – Sunnyvale – Santa Clara, CA [22,200]

What may surprise some is that the majority of approved H-1B visas do not go to Silicon Valley, or even California, but to New York and Texas. Along with other east coast metropolitan areas. This could potentially point to increased engagement of the informal or ‘gig’ workforce in California and areas west of Texas as well as an increase in SOW engagements as opposed to full time employment to fill highly skilled positions on a contract basis.