U.S. employers are projecting a slight decline in hiring for Quarter 3 2008, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey conducted quarterly by Manpower Inc.

"While overall softness continues in the third quarter, employers are generally not reacting with large-scale payroll reductions," said Jeffrey A. Joerres, chairman and CEO of Manpower Inc. "The gradual slowdown suggests that employers have become sophisticated at anticipating their hiring needs."

Of the 14,000 U.S. employers surveyed, 26% expect to increase their workforces during the July - September period, while 10% expect to scale back their payrolls for a net employment outlook of 16% (seasonally adjusted 12%). Fifty-eight percent expect no change in the hiring pace, and 6% are undecided about their hiring plans.

Seasonally adjusted survey data indicates that hiring in five of the 10 industry sectors surveyed will decrease slightly during the upcoming quarter compared to Quarter 2 2008 making it the weakest employment outlook since Quarter 4 2003.

Employers in the Non-Durable Goods Manufacturing, Transportation/Public Utilities, Wholesale/Retail Trade, Finance/Insurance/Real Estate and Education sectors all point toward somewhat more guarded hiring activity than in Quarter 2 2008. Construction, Durable Goods Manufacturing, Services and Public Administration staff levels are expected to remain stable compared to the previous quarter. Mining is the only sector indicating an increase in hiring for the upcoming quarter.

"Hiring looks to be a bit cooler this summer," said Jonas Prising, president of Manpower North America. "However, select industries are showing stability that may provide opportunities for job seekers who have the skills that employers need."

Employers in the Northeast and South anticipate a slight downturn in hiring heading into Quarter 3 2008. In the Midwest, a positive net employment outlook is expected, while employers in the West are expressing a moderate decrease in hiring.

The Global Manpower Employment Outlook Survey data reveals that employers in India, Singapore, Peru, Poland, Costa Rica, Hong Kong, Romania, Argentina, Taiwan, Australia, Mexico and Japan report the most optimistic Quarter 3 2008 hiring plans. On the other hand, employers in Spain, Italy and Ireland are reporting the weakest job prospects in the next three months.

Of the seven countries surveyed in the Americas, employers in Peru, Costa Rica and Argentina are most optimistic about adding staff in the next three months, while those in Canada are the least optimistic. Mexican employers continue to be upbeat about hiring while employer confidence in the U.S. continues to decline.

As was the case in Quarter 2 2008, across the 17 countries surveyed in the Europe, Middle East and Africa (EMEA) region, employers in Poland, Romania, Greece, S. Africa and Norway are most optimistic about hiring in the quarter ahead. In contrast, the hiring forecasts from Spanish, Italian and Irish employers are the least optimistic in the region and globally.

In Asia Pacific, the survey data continues to show varying degrees of positive hiring expectations. Employer hiring plans have softened from both the second quarter and one year ago in five of eight countries and territories surveyed. The strongest employer hiring plans were again reported in India and Singapore, while employers in China reported the weakest hiring outlook in the region for the fourth consecutive quarter.