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Global PMI employment index at second-highest since May 2019 as
firms seek to boost capacity
Job gains fueled by rising backlogs of work and brighter
outlook
Broad-based developed word job market strength contrasts with
stalling emerging market employment
Global employment growth accelerated in March, according to the
worldwide PMI surveys compiled by IHS Markit, as companies
increasingly sought to boost capacity in line with rising demand.
The rate of increase hit the second-highest since May 2019, falling
just shy of November's recent peak, with hiring picking up at
similar rates across the manufacturing and service sectors. Service
sector jobs growth was the strongest since last November while
factory job creation hit the highest for 28 months.
Firms boost capacity
The jobs gain was driven by the largest rise in companies'
backlogs of uncompleted orders since June 2018, reflecting in part
the recent rise in new order inflows, which hit the highest for
nearly three years in March as demand continued to rebound from
coronavirus disease 2019 (COVID-19) lockdowns. Demand also
increased as customers prepared for vaccine roll-outs to boost
economic growth in coming months. Future business expectations rose
globally to the highest for seven years, the heightened optimism
further spurring the return to the jobs market for many
companies.
Job gains led by financial services
The steepest rate of global job creation was seen in the
financial services sector, where the increase was the joint-largest
since mid-2018. In manufacturing, the largest payroll gain was
recorded by producers of intermediate goods, which are products
supplied to other firms as inputs. Input buying has risen sharply
in recent months, in part due to worries about future supply
shortages.
Only in consumer services was a net cut to headcounts reported,
though even here the rate of job losses eased.
Broad-based developed world job market
improvements
Among the largest economies, jobs growth was led by the UK,
which reported the first net increase in employment since the start
of the pandemic and the steepest monthly increase for just over
three years. Robust job gains were also seen in the US, where
payroll numbers rose for a ninth straight month, and the eurozone -
the latter notably seeing the strongest net job gain since June
2019 as employment rose for a second consecutive month. Employment
growth also accelerated in Japan, reaching the highest since
January 2020.
Measured across all developed markets, employment growth was the
strongest since May 2019.
Emerging market employment steadies
In contrast, employment in the emerging markets remained
unchanged, albeit stabilising from contractions in the first two
months of the year.
Although China eked out a modest employment gain after net job
losses were reported in February, and Russia reported the fastest
increase in payroll numbers for just over two years, job losses
accelerated in both Brazil and India to the highest for seven and
five months respectively.
While Brazil is seeing a double-dip downturn in its labour
market after hiring briefly rebounded between November and
December, the Indian PMI survey has not recorded any jobs growth
since the start of the pandemic in February of last year.
Chris Williamson, Chief Business Economist, IHS
Markit
Purchasing Managers' Index™ (PMI™) data are compiled by IHS Markit for more than 40 economies worldwide. The monthly data are derived from surveys of senior executives at private sector companies, and are available only via subscription. The PMI dataset features a headline number, which indicates the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilization, employment and inventories. The PMI data are used by financial and corporate professionals to better understand where economies and markets are headed, and to uncover opportunities.
