Manpower Employment Outlook Survey Finds Continued Hiring Confidence Among U.S. Employers in Store for the New Year

December 13, 2005 at 12:00 AM EST

MILWAUKEE, Dec 13, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- U.S. employers plan to carry over their positive hiring sentiments into 2006, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey, conducted quarterly by Manpower Inc. This rounds out two consecutive years of consistent job prospects.

"U.S. businesses are not aggressively seeking to increase staff levels as they enter the new year. Instead, they are looking back over the past several quarters and are concluding that hiring is still on target with their operational needs," said Jeffrey A. Joerres, Chairman & CEO of Manpower Inc.

Of the 16,000 U.S. employers surveyed, 23% anticipate an increase in hiring activity for the first quarter of 2006, while 10 percent expect to decrease staff levels. Sixty-one percent of employers surveyed foresee no change in hiring plans, while 6% are unsure of their staffing needs. The seasonally adjusted Net Employment Outlook for the first three months of the year is 20%, identical to the fourth quarter of 2005 and nearly the same as a year ago.

Employers in six out of 10 industry sectors surveyed foresee minimal changes in hiring activity as they move from the fourth quarter into the new year, including Durable and Non-Durable Goods Manufacturing, Wholesale/Retail Trade, Finance/Insurance/Real Estate, Education and Public Administration.

"Although hiring projections have remained steady for two years, different stories emerge each quarter from the industry sectors, and Construction is the lead story for first quarter of 2006. In spite of interest rate and housing bubble speculation, Construction employers are forging ahead with their most optimistic job forecast in 27 years," said Joerres.

Conversely, the hiring pace is likely to soften from the fourth quarter in the Transportation/Public Utilities and Services sectors. A more visible slowdown is expected in the Mining sector, where hiring managers report a moderate slide in employment plans.

Among the U.S. regions, stronger hiring patterns are in store for the South and the West when compared with the fourth quarter outlook. Little change is anticipated in the Midwest, while employers in the Northeast foresee a noticeable chill in hiring.

In addition to the United States, the Manpower Employment Outlook Survey is conducted in 22 other countries and territories. The quarterly report from Manpower Inc. is the most extensive, forward-looking employment survey in the world, gathering data from more than 45,000 employers across the globe each quarter.

The Manpower Employment Outlook Survey released today revealed that first-quarter employment prospects are expected to be strongest in India, New Zealand, Taiwan, United States and Australia. On the other hand, employers in Germany, Italy and Austria are forecasting negative hiring expectations for the quarter ahead, with their counterparts in Sweden and France reporting their weakest hiring outlooks since the survey began in these countries in the third quarter of 2003. While 19 of 23 countries surveyed reported positive hiring outlooks for the quarter ahead, 11 of 23 were weaker compared to last year at this time and most of the lower outlooks are from European employers.

"First-quarter hiring across the European labor markets we survey is typically soft, but this year it appears more pervasive, with only UK employers looking to accelerate hiring from the fourth quarter," said Joerres. "A number of labor markets in this region are currently experiencing challenging political, social and economic conditions and this is clearly having an impact on businesses' willingness and/or ability to add to their workforces. For now, at least, companies are going to continue to be cautious."

Of the 12 countries surveyed across Europe, employment prospects are strongest in the UK, Ireland, Norway, Belgium and Spain.

Meanwhile, on the other side of the globe, hiring in Asia Pacific remains strong. Indian employers continue their solid hiring pace, albeit at a considerably reduced rate from the previous quarter, and employers in New Zealand, Taiwan, Australia, Hong Kong, China and Japan all expect to increase hiring activity slightly from the fourth quarter of 2005. However, year-over-year decreases in hiring expectations were reported in both Hong Kong and New Zealand.

The next Manpower Employment Outlook Survey will be released on March 14, 2006 to report hiring expectations for the second quarter.

About the Survey

The Manpower Employment Outlook Survey is conducted quarterly to measure employers' intentions to increase or decrease the number of employees in their workforce during the next quarter. It is the only forward-looking survey of its kind, unparalleled in its size, scope longevity and area of focus. The survey has been running for more than 40 years and is one of the most trusted surveys of employment activity in the world. The Manpower Employment Outlook Survey is based on interviews with more than 45,000 public and private employers worldwide and is considered a highly respected economic indicator.

The Manpower Employment Outlook Survey is currently available for 23 countries and territories: Australia, Austria, Belgium, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. The program began in the United States and Canada in 1962, and the United Kingdom was added in 1966. Mexico and Ireland launched the survey in 2002, and 13 additional countries have been added to the program in 2003. New Zealand joined the program in 2004, and China, India, Switzerland and Taiwan were added in 2005. For more information, visit the Manpower Inc. Web site at http://www.manpower.com , and enter the Press Room.

About Manpower Inc.

Manpower Inc. (NYSE: MAN) is a world leader in the employment services industry, offering customers a continuum of services to meet their needs throughout the employment and business cycle. The company specializes in permanent, temporary and contract recruitment; employee assessment; training; career transition and organizational consulting services. Manpower's worldwide network of 4,300 offices in 72 countries and territories enables the company to meet the needs of its 400,000 customers per year, including small and medium size enterprises in all industry sectors, as well as the world's largest multinational corporations. The focus of Manpower's work is on raising productivity through improved quality, efficiency and cost-reduction, enabling customers to concentrate on their core business activities. In addition to the Manpower brand, the company operates under the brand names of Right Management Consultants, Jefferson Wells, Elan and Brook Street. More information on Manpower Inc. is available at http://www.manpower.com .

SOURCE Manpower Inc.

Lisa Tagliapietra of Manpower Inc., +1-414-906-6540,
lisa.tagliapietra@na.manpower.com
http://www.prnewswire.com

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