Manpower Employment Outlook Survey Predicts Conservative Hiring Climate in Canada for Start to 2006

December 13, 2005 at 12:00 AM EST

TORONTO, Dec. 13, 2005 (Canada NewsWire via COMTEX News Network) -- Canadian employers expect a limited hiring climate for the first quarter of 2006 according to the latest results of the Manpower Employment Outlook Survey, the most extensive, forward-looking employment survey in the world.

The survey of more than 1,700 Canadian employers reveals that 17 per cent plan to increase their payrolls while 15 per cent anticipate cutbacks for a Net Employment Outlook of two per cent. Of those polled, 65 per cent expect no changes and three per cent are unsure of their staffing intentions.

With seasonal variations removed from the survey, the Net Employment Outlook of 17 per cent is a three per cent decrease from the previous quarter; however, hiring expectations continue to be respectable for the first quarter of 2006.

"This quarter's Net Employment Outlook indicates a subdued hiring forecast and is the lowest since the first quarter of 2004 when the Net Employment Outlook was one percent," said Lori Procher, spokesperson for Manpower Canada. "The seasonally adjusted Net Employment Outlook is the lowest since the fourth quarter of 2004; however, the first quarter of the year is normally a restrictive hiring period."

"Three of the four regional projections are in line with the national Net Employment Outlook," Procher adds. "Quebec employers reported a Net Employment Outlook of three per cent. Atlantic Canada employers also anticipate a flat hiring climate with a Net Employment Outlook of two per cent, while Ontario employers expect a disappointing hiring climate for the beginning of the year with a Net Employment Outlook of minus three per cent. Employers in Western Canada predict above average results for this time of year with a reported Net Employment Outlook of 17 per cent."

Of the 10 surveyed industry sectors, Mining employers report the most vigorous results for the first three months of 2006 when seasonal variations are removed, with a Net Employment Outlook of 50 per cent. Employers in the Services and Public Administration sectors anticipate a healthy quarter with respective Net Employment Outlooks of 27 and 22 per cent.

Construction

Employers in the Construction sector expect a hopeful hiring pace with a seasonally adjusted Net Employment Outlook of 17 per cent. This is a significant decrease of 15 per cent from the previous quarter and a four per cent decrease compared to this time last year.

Education

Education sector employers predict a modest quarter with a seasonally adjusted Net Employment Outlook of five per cent. This is a nine per cent decrease from the previous quarter when the Net Employment Outlook was 14 per cent. It is also a decrease of seven per cent when compared to the same period last year.

Finance, Insurance & Real Estate

Employers in the Finance, Insurance & Real Estate sector project a steady hiring climate with a seasonally adjusted Net Employment Outlook of 16 per cent. This Net Employment Outlook is a two per cent increase from the previous quarter, and a four per cent decrease from the same time last year.

Manufacturing - Durable Goods

A moderate three-month period is anticipated by employers in the Manufacturing - Durable Goods sector where a Net Employment Outlook of six per cent is reported, once seasonal variations are removed. This Net Employment Outlook is a decrease of seven per cent from the previous quarter, and is also a decrease from the same time last year when the Net Employment Outlook was 14 per cent.

Manufacturing - Non-durable Goods

Manufacturing - Non-durable Goods sector employers project a positive hiring climate with a seasonally adjusted Net Employment Outlook of 13 per cent. This is a decrease of six per cent from the previous quarter and is equal to the Net Employment Outlook reported this time last year.

Mining

Employers in the Mining sector anticipate a vigorous first quarter with a Net Employment Outlook of 50 per cent once seasonal variations are removed. This is the most optimistic outlook on record for this sector. Hiring plans in Mining rose by one per cent from the previous quarter and is also a moderate increase compared to the same time last year when the Net Employment Outlook was 44 per cent.

Public Administration

Public Administration sector employers predict a solid hiring climate with a Net Employment Outlook of 22 per cent. Hiring expectations fell by three per cent from the previous quarter, but increased by six per cent from one year ago.

Services

Employers in the Services sector expect an optimistic hiring climate for the upcoming quarter with a seasonally adjusted Net Employment Outlook of 27 per cent. This is an increase of four per cent from the previous quarter when the Net Employment Outlook was 23 per cent and a considerable increase of 9 per cent from the same time last year. This is the most optimistic outlook for the sector since the second quarter of 1989.

Transportation & Public Utilities

Employers in the Transportation & Public Utilities sector predict a positive outlook with a seasonally adjusted Net Employment Outlook of 17 per cent. This is an increase from the previous quarter when the Net Employment Outlook was 16 per cent and a two per cent increase when compared to the same time last year.

Wholesale & Retail Trades

Employers in the Wholesale & Retail Trade sector project a hopeful staffing picture for the first quarter of 2006 with a Net Employment Outlook of 16 per cent. Results for the sector fell from last quarter by six per cent and decreased by 10 per cent compared to this time last year. This is the least optimistic outlook for the sector since the first quarter of 2003.

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. The Manpower Employment Outlook Survey is the most extensive, forward-looking survey in the world, asking employers to forecast employment over the next quarter. 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 in Canada is based on interviews with more than 1,700 public and private employers in 43 markets across the country and is considered a highly respected economic indicator. The margin of error for the Canadian survey is +/- 2.4 per cent.

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, organizational consulting services and professional financial 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 and Elan. More information on Manpower Inc. is available at www.manpower.com.

With over 50 offices strategically located across the country, Manpower Canada's staffing services include administrative, industrial, skilled trades and contact centre personnel as well as the assignment of contract professionals in information technology, scientific, finance, engineering, telecommunications and other professional areas under the Manpower Professional brand. More information on the company can be found on Manpower Canada's Web sites, manpower.ca and manpowerprofessional.ca.

SOURCE: Manpower Inc.

Contact: John Settino, The iPR Group, Tel: (416) 536-4741, Email: john@theiprgroup.ca

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