US businesses more optimistic about economy

C-suite and human capital leaders in the United States are more optimistic about the future of their businesses in 2020, when compared to 2019, according to Randstad Sourceright’s 2020 Business Health Index.

Paired with insights released in its 2020 Talent Trends Report, Randstad Sourceright's Business Health Index finds that overall business sentiment in the U.S. has risen by 11 points, based on weighted index scores. This improvement in business outlook has moved the U.S. up five spots to 10th place, ahead of China, France and the United Kingdom.

“Historic lows in unemployment and steady job gains marked a strong 2019 for the American workforce, and human capital professionals feel that this momentum will carry into 2020,” said Rebecca Henderson, CEO of Randstad global businesses and executive board member. “Business leaders are keeping a close eye on the political environment and how it will potentially impact their business this election year.”

The Business Health Index ranks 17 markets based on four key measures to formulate a single outlook score for each market. Measures include reported business growth against expectations, levels of hiring, the political environment’s perceived impact on business and future growth stance. Specifically, the data shows that:

Sixty-five percent of C-suite and HR leaders around the world reported hiring extensively in the last 12 months.

The number of C-suite and HR leaders in the U.S. who expect the political environment to have a positive impact on their businesses is up by more than 46 percent from last year.

Mexico, Latin America’s second largest economy, is also a major mover in the 2020 index, rising from last place on 2019’s list to the fourth spot this year. Mexico faced a mild recession in early 2019, but an expanding economy, more robust construction activity and a 20-percent wage gain may be driving confidence that the economy and its businesses are bouncing back.

The Netherlands, Japan, Germany and Mexico rank highest in the 2020 index, while Canada, Poland and Italy show the least positive outlooks for the year ahead.

Randstad Sourceright’s 2020 Talent Trends Report, Unlock human potential in a perfect storm of technology, is based on survey data from more than 800 C-suite and human capital leaders  in 17 markets. It provides human capital leaders with an inside look at the top 10 HR trends they need to follow this year to develop their talent management strategies that complement technological innovation in the workplace.

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