The US manufacturing sector improved in February, and the pace of improvement was the fastest since July 2022, according to the S&P Global US Manufacturing PMI released today.
The index rose to a reading of 52.2 in February from 50.7 in January.
“Manufacturing is showing encouraging signs of pulling out of the malaise that has dogged the goods-producing sector over much of the past two years,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a press release.
“After a long spell of reducing inventories to cut costs, factories are now increasingly rebuilding warehouse stock levels, driving up demand for inputs and pushing production higher at a pace not seen since early 2022,” Williamson said. “There are also signs of stronger demand for consumer goods, linked in part to signs of the cost-of-living crisis easing.”
The rate of job creation in manufacturing also improved at the quickest pace since September, according to the S&P report.
“Firms are consequently investing in more staff and more equipment, laying the foundations of further production gains in the coming months to hopefully drive a stronger and more sustainable recovery of the manufacturing economy,” Williamson said.
“Problems with shipping disruptions and supply chains earlier in the year have eased, taking some pressure off input prices, though factory gate prices are recovering amid stronger customer demand, which will be an area to watch closely in the coming months as policymakers assess the appropriateness and timing of any interest rate cuts,” he said.
There were 200,000 job postings over the past 12 months for artificial intelligence skills and job roles, according to an analysis by Lightcast that was posted on Feb. 28 by CompTIA.
In recent months, employment opportunities for AI-specific roles or for jobs requiring AI skills accounted for 10% or more of all tech job postings in the US, CompTIA reported.
“Some new job roles are emerging with AI, but millions of existing professionals will need to upskill and acquire new AI competencies to be able to meet the needs of the job market,” Thomas Reilly, CompTIA’s chief product officer, said in a press release.
CompTIA sees growing demand for AI skills impacting four existing job clusters: software development, cybersecurity, systems operations, and data analytics. In addition, AI will create entirely new job roles for prompt engineering and AI systems architects.
CompTIA also announced it is creating a range of AI certifications and training offerings.
More than half of recruitment firms, 55%, began experimenting with artificial intelligence in 2023, according to Bullhorn’s Global Recruitment Insights and Data 2024 Industry Trends report. However, firms that were experimenting with AI were 31% more likely to see revenue gains than firms that had not begun experimenting.
“Last year was a challenging one for many staffing firms, but as we look ahead to a brighter future, there are some lessons that the entire recruitment industry should pay attention to,” Gretchen Keefner, senior VP of global enterprise business at Bullhorn, said in a press statement.
“Staffing firms that make the most of technologies such as AI and automation are, and will be, in a better position to lower margins, increase productivity, and differentiate their businesses from the competition,” Keefner said. “Forward-thinking firms are looking at technology to help candidates find the best-fitting roles, help clients get workers on the job faster, and win more clients.”
High-performing firms had higher adoption rates of AI tools overall, suggesting their early adoption of AI further enhanced productivity and profitability, according to the report. The firms were more than twice as likely to report using AI-driven tools for shift scheduling and credentialing.
The report also found that in 2023, the number of staffing firms reporting revenue growth declined for the first time in three years. However, despite market headwinds, 17% of respondents still reported a revenue increase greater than 10%.
Meanwhile, 65% of recruitment firms expect their revenue to increase this year. However, uncertainty over the economy remains a top challenge for 60% of respondents. Aligned with the outlook, staffing firms’ top priority this year is winning new business, cited by 44% of respondents, followed by digital transformation, candidate acquisition, and strengthening client relationships.
The report includes responses from more than 1,400 staffing and recruitment professionals across industries globally and was conducted in late 2023.
Hiring with purpose can offer performance, innovation, and retention benefits. Leslie Vickery, CEO and founder of ClearEdge and TheEdge podcast, writes about what it means to hire with purpose and how staffing firms can do so in the upcoming issue of Staffing Industry Review magazine. “In the end, purpose-driven hiring is what gets individuals and teams through the hard times,” Vickery writes.