What’s the current labor market situation in manufacturing and engineering?

In 2022, the manufacturing and engineering sector offered a wide range of job opportunities in a variety of industries. The situation changed in the last quarter of last year, when the number of job offers fell by around 20-30%. There is no indication that this will change in 2023, but companies will continue to have a significant need for highly specialised technical staff. In 2022, people with skills in automation, robotics, electrics, electronics, mechanics and optimisation were most in demand on the job market, which is directly related to the continuous development of automation of production processes in companies. Last year, the most sought-after engineering positions were those related to production engineering, process engineering, quality engineering, as well as design positions and the aforementioned automation and robotics positions.

This year will be a time when employers will be looking for people who are skilled and committed to their jobs. Due to rising inflation, candidates will take a safer approach to changing employers, which has been noticeable since mid-2022. Candidates clearly indicate that stability, organizational culture, openness to change, growth opportunities and salary are very important to them in a potential employer. This trend will become even more pronounced this year.

Manpower’s observations also show that current employees in management positions are far more open to discussing a career change, while members of the younger generation are more likely to value stability and the opportunity to gain experience. In addition to the obvious search for a salary that appeals to them, candidates pay a lot of attention to the possibility of remote or hybrid work. More and more people are also looking for opportunities to work on projects that challenge them. On the other hand, work-life balance has become more important to senior executives. A lack of job satisfaction and a desire for a more attractive salary are now the main reasons for changing jobs.

It is estimated that salaries in the technical and engineering industry will increase by 8% this year, which will be the highest increase in years. According to our observations, this significant increase in salaries also applies to engineering or entry-level positions related to electrical and power engineering. This could be the result of large-scale investments, resulting in increased employment, such as a new factory of a car manufacturer or the construction of a nuclear power plant.

Salary is now the most important element in recruitment interviews. Employers who have urgent projects to complete are willing to pay higher recruitment costs. Many companies no longer even provide a so-called salary range, because they

do not want to limit the pool of candidates, leaving this topic to recruiters and candidates. The issue of counteroffers is not insignificant. Although initial offers to candidates are at market rates, existing employers often offer significantly higher salaries or promotions.

Authors: Karolina Grula, Senior Permanent Placement Business Consultant, Katarzyna Urbanowicz, Senior Permanent Placement Business Consultant & Aleksandra Marchewka, Recruitment Business Partner