"Compared to three months ago, a greater percentage of the world's employers are telling us they will make no changes to their workforces, suggesting that the worst could be behind us. In the U.S., the cautious hiring pace will remain a challenge for job seekers as employers continue to adjust and align their workforces throughout the year to ride out this downturn and prepare for growth on the other side," said Jeffrey A. Joerres, Chairman and CEO of Manpower Inc. "Across Europe, we are seeing a continued weaker appetite for employees in the Manufacturing sector. In fact, in Europe's largest economy, the percentage of German manufacturers expecting layoffs rose nine percent compared to the previous quarter."
Employers in 11 of 34 countries and territories surveyed expect some positive hiring activity in the coming quarter, but those in 22 are forecasting negative outlooks with 17 reporting their weakest hiring plans since the survey was established. While employers in all countries and territories are reporting weaker year-over-year forecasts, outlooks have improved from three months ago in 12 countries. Although weaker than historical patterns, third-quarter hiring plans are strongest in India, Norway, Poland, Peru, Singapore and Taiwan and weakest in Ireland, Spain, Greece, Romania, Italy, Japan and the U.K.
Across the eight countries and territories surveyed in the Asia Pacific region, employment prospects remain soft, with employers in India, China and Japan reporting their weakest hiring plans since the surveys were established in these countries. Despite the weak forecast for the Indian market, employers there remain the most optimistic in the region. On the other hand, compared to three months ago outlooks for half of the countries and territories have improved, most notably in Singapore and Taiwan.
"In our second quarter report, the Indian labor market showed signs of resilience, but employers there are now much more uncertain about adding employees. In India's key Services sector, 11 percent of employers are telling us they will reduce staff in response to weaker demand from offshore clients," said Joerres. "On a more positive note, the improved outlooks for Singapore and Taiwan are being bolstered by stronger demand in the Transportation and Utilities sector."
Of the 18 countries surveyed in the Europe, Middle East and Africa (EMEA) region, only employers in Norway, Poland, Switzerland, South Africa and the Czech Republic are reporting positive, but modest, third-quarter hiring activity. As was the case in the previous quarter, in countries where year-over-year comparisons can be made, all outlooks are weaker. Job prospects in the region are strongest in Norway and Poland and weakest in Ireland and Spain. Hungarian employers are surveyed for the first time this quarter and, like the majority of their counterparts in the region, are reporting negative hiring expectations.
"In Norway, the positive outlook is due in part to upbeat hiring expectations in the Public/Social sector where government stimulus plans and a shortage of educators are boosting employer confidence. In contrast, employer optimism in the U.K. remains at a record low with 10 percent of employers saying they will cut staff in the quarter ahead," said Joerres. "Our operations in Poland indicate that infrastructure improvements within the country are fueling the strong hiring plans in the Construction sector, despite a slowdown in the residential market."
Across the eight countries surveyed in the Americas region, hiring expectations are weaker compared to three months ago in five countries. However, compared to one year ago, hiring plans are weaker across all of the Americas countries Manpower surveys.
"Canadian and U.S. job seekers in the Manufacturing-Durables sector will continue to struggle in the quarter ahead as employers grapple with demand issues, particularly those in the flagging automotive industry," said Joerres. "Notably, Mexican employers reported their second consecutive negative forecast despite employers in all sectors expecting to lift the pace of hiring from three months ago."
