Over half of senior executives expect job numbers to fall in the coming year. Less than one in six (15 percent) of executives in Europe expect to grow their workforces in the next 12 months, while 51 percent expect to see headcounts fall, according to member-based advisory firm CEB.

As unemployment in Europe surged to a record high last month, CEB’s survey of over 1000 c-suite executives across the globe revealed the eurozone’s weak labour market is unlikely to recover soon, with unemployment looking to sit sitting stubbornly between 12 percent and 13 percent for the next year. The slump in hiring outlook is due to low expectations for top-line growth and an anticipated rise in labour costs, with those most badly hit in healthcare, government and telecommunications. Meanwhile, IT companies showed the most positive hiring outlook, with 50 percent of executives globally aiming to increase staff numbers. As the global economy shows green shoots of recovery, Europe also continues to lag behind. Worldwide, twice as many executives expect to see headcounts increase (32 percent) as in Europe. However, despite the grim hiring outlook, the study showed there may still be cause for optimism. Over one third (37 percent) of executives expect to see an increase R&D in the next year, a significant rise from the last quarter, while expectations for CAPEX are also rising.

Paul Dennis, senior director at CEB, said: “In a market where most companies are cautious about hiring, CFOs are increasingly looking for higher levels of productivity and more valuable output from their people. In today’s increasingly competitive market, in which most companies operate with very lean structures, talent productivity is becoming an ever more important source of competitive advantage.”