Private sector respondents are less optimistic now than they were a year ago about increases in their employers’ workforce size. In September 2023, 41 percent of respondents to a McKinsey Global Survey on economic conditions anticipated workforce increases in the next six months. A year later, that figure had dropped to 31 percent. However, senior partner Sven Smit and coauthors find that respondents’ expectations for profits and customer demand remain relatively positive and stable.
Image description:
A bar chart tracks private sector expectations for changes in workforce size at their companies over time. Each bar represents a point in time, from September 2023 to September 2024. The height of each bar represents the percentage of respondents who anticipate an increase or a decrease in workforce size. In September 2023, 41% of respondents anticipated an increase. This number decreased to 37% in December 2023, 34% in March 2024, and 33% in June 2024, before falling to 31% in September 2024. In September 2023, 21% of respondents anticipated a decrease in workforce size. This figure increased to 22% in December 2023, 23% in March 2024, and 24% in June 2024, before reaching 28% in September 2024.
Footnote: Respondents who answered “stay the same” or “don’t know” are not shown. August 31–September 8, 2023, n = 787; November 27–December 1, 2023, n = 861; March 4–8, 2024, n = 868; June 3–7, 2024, n = 849; August 28–September 6, 2024, n = 1,097.
Source: McKinsey Global Surveys on economic conditions, 2023–24.
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To read the survey, see “Economic conditions outlook, September 2024,” September 27, 2024.