How observations 2010 International Monetary Fund
Author: Michelle Leonny
Companies worldwide are looking to hire new staff, one of the first signs that global economic recovery is on a sustainable path. This is the main conclusion of the third edition of the global survey commissioned by Regis Business Tracker Regis Group – a leading provider of innovative solutions for the workplace, which included more than 10,000 companies worldwide. The fact that companies are looking to hire additional staff is considered an indicator of which organizations have shifted their investment for strong growth through human capital. More than a third of companies (36%) respondents intend to increase its staff. Mexican business outperformed the global average, and that 41% of businesses have decided to hire new staff in 2011.
These results are particularly significant, since according to recent observations of the International Monetary Fund (IMF) and International Labor Organization (ILO), global unemployment has reached unprecedented proportions in the last three years (up to 210 million since 2007). These organizations have warned of potential problems for national economies if this trend continues, because unemployment reduces the national tax revenue and increased spending. The results of the Regis Business Tracker provide important evidence that global unemployment situation may improve in 2011.
The survey sought the views of over 10,000 business leaders in 78 countries, asking about the behavior of their current income, profitability, and its projections of future earnings and expectations of the broader national economic growth. These indicators form the basis for the index of optimism in business, he uncharacteristically reflect current performance and prospects in the short term. Globally, in this latest edition Regis Business Tracker, the index showed a much more positive with a higher proportion of more optimistic countries, compared to six months ago. Particularly Mexico, within the overall index (98 units) showed a slightly more pessimistic rating standing at 96 units, a point lower than six months ago.
“The intention to increase the payroll is a clear indicator that companies want to be prepared to seize the opportunities that the recovery may throw in their way. Mexico in particular – where unemployment has risen 50% since late 2007, reaching the 5.44% in August, which means that 2.5 million people are unemployed [1] – should consider this indicator as a sign of positivist for sustainable employment recovery, “Cacti says Monica Credo – Director General of Regis Mexico.
“Despite this optimism, our research also highlights that 41% of companies are still trying to reduce their costs through other means such as reducing staff; it reveals an overall attitude of cautious optimism. The companies currently seeking to improve their economies with their own operations, is likely to see more organizations offering flexible working practices to their current and future employees in an attempt to achieve a better balance between personal and professional life of the employee, so you have an organization much more efficient and productive. “
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