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Prelude to Hiring Slowdown: Survey

U.S. employers are anticipating a decline in hiring for Quarter 2 2008 (Q2), reveal the findings of the latest Manpower Employment Outlook Survey, conducted quarterly by Manpower Inc. "A slowing in hiring intentions reflects a widespread wait-and-see approach among employers," says Chairman & CEO of Manpower, Jeffrey A. Joerres, Inc. "However, the survey data points to a gradual and measured downshift, not a sudden and overwhelming change. Interestingly, this data does not look like previous recessionary periods where we experienced much more accelerated declines." Joerres adds. Of the U.S employers polled, 26% expect to increase their workforces during Q2 2008, while 9% expect to reduce staff levels. Furthermore, 60% expect no change in the hiring pace, and 5% are undecided about their April - June hiring plans. The seasonally adjusted survey results reflect the weakest employment outlook since Q1 2004, as hiring activity is expected to remain stable or decrease in all industry sectors but one. For Q2 2008, employers in the Finance/Insurance/Real Estate, Education and Services sectors anticipate stable staffing levels, while employers in Mining, Durable and Non-Durable Goods Manufacturing, Wholesale/Retail Trade, Public Administration and Construction all report a decrease in hiring confidence. Transportation/Public Utilities is the one sector to indicate an increase in hiring for the upcoming quarter, and that is expected to be slight. "While the survey results indicate increased employer hesitation toward adding staff, it is not all bad news," says Jonas Prising, President of Manpower North America. "Select industries, including Services, Transportation/Public Utilities and Mining, appear to be staged for some growth opportunities." Within the four U.S. regions surveyed, employers in the Northeast and South project hiring plans similar to the previous quarter, while those in the Midwest and West anticipate weaker hiring conditions during the next three months. Employers in many of the world's largest economies will be taking a step back in hiring in the second quarter. Notably, employers in the United States, China, Italy, Norway and Spain have indicated that they will be adding fewer employees in the quarter ahead, marking a more negative tone than in survey results throughout the past year, suggests the survey.