U.S. employers remain optimistic about hiring

But construction sector begins to cool

The American labour market continues to be strong, according to a recent survey by staffing firm Manpower. The majority of employers in the United States will maintain staffing levels in the third quarter of 2006 while nearly one-third plans to add more staff.

“It is unlikely that we will experience any major swings, negative or positive, in the job market until employers see a dramatic change in demand for their products and services,” said Jeffrey Joerres, chairman and CEO of Manpower Inc.

Of the 16,000 U.S. employers polled for the Manpower Employment Outlook survey, 31 per cent expect to add to their payrolls during the third quarter of 2006, while six per cent expect to reduce staff levels. Fifty-seven percent expect no change in the hiring pace, while six per cent are undecided about their July to September hiring plans.

Hiring in both the construction and mining sectors seems to be slowing down. Construction employers are less likely to add staff in the late summer months than they were in the April to June period, although the change is minimal.

“Although construction employers expect to hire at a brisk pace again during the third quarter, hiring in this sector has inched downward throughout 2006," said Joerres. "There is rampant speculation about the state of the housing market, and these survey results are another piece of evidence that point toward a cooling trend."

However, some positive industry trends have emerged. Employers in four sectors — transportation/public utilities, finance/insurance/real estate, services and public administration — expect slightly improved employment prospects for the third quarter versus the second quarter.

In addition to the United States, the Manpower Employment Outlook Survey is conducted in 24 other countries and territories.

Third quarter hiring is expected to be positive in 23 of 25 countries and territories surveyed, with employers in India, Japan, Hong Kong, Ireland and Belgium reporting their most optimistic hiring plans to date. Meanwhile, the labor market continues to cool in China with employers reporting their weakest hiring plans since the survey began there.

“Overall, the global labor market appears to be in good shape with continued steady hiring expected in the U.S. and throughout the Americas. Europe continues to improve from last year and hiring activity is generally strong across Asia Pacific,” said Joerres.

“Currently, we are seeing peaks, such as the continued robust hiring outlooks in India and Japan, and valleys, such as renewed pessimism in Germany and the weaker indications in China, but employers in the majority of the countries we survey are adding to their workforces.”

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