Employers more cautious about hiring in third quarter

Western Canada, Quebec to do most hiring: Manpower

TORONTO (Reuters) — Canadian employers are less inclined to addjobs than they were just three months ago, according a survey released onTuesday that cast doubt on whether a hiring boom seen in May will be sustained.

A net nine per cent of Canadian employers expect to add jobs in the thirdquarter, with the biggest gains seen in the transportation and public utilitiessector, the study from staffing company Manpower showed.

That was down slightly from a net 12 per cent three months earlier.

The seasonally adjusted number, based on a survey of 1,900 Canadianemployers, also represents a drop from the net 12 per cent of employers that expected to hire in the same quarter last year.

"The curvature on our trend is going down," said ByrneLuft, a vice-president at Manpower Canada."We had gains in 2012 but it's again heading more into negativeterritory."

The quarterly Manpower survey measures the difference between employers that say they will add jobs and those planning to cut positions, adjusting thenumbers for seasonal changes.

The survey follows a report on Friday that showed the Canadian economy addeda much higher than expected 95,000 jobs in May. This followed a net loss inMarch and small gain in April.

Luft noted the month-to-month numbers don't always reflect the longer termoutlook.

"Having one month where it spikes is promising, but it's not somethingto be excited about because the trend isn't exactly optimistic," he said.

The Manpower survey also showed some areas of strength.

A net 23 per cent of employers in the transportation and public utilitiessector plan to hire in the third quarter. A weaker Canadian dollar, which makesexports more attractive, is expected to boost activity in the sector, Luftsaid.

That's an increase of five percentage point from the same period last yearand the strongest result since the second quarter of 2007.

Employers in the sector in WesternCanada and Quebecexpect to do the most hiring, with a net 32 per cent projecting they will add topayrolls.

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