Asia job outlook improves, U.S. recovery muted: poll
Reuters
Dec 08, 2009
By Nick Zieminski
NEW YORK (Reuters) - A forward-looking measure of hiring intentions improved in the United States and most other countries, suggesting job growth may resume in the first quarter, according to a quarterly survey by Manpower Inc <MAN.N>.
The survey shows the pace of jobs recovery appears to be faster in the United States than in Asia or Europe, and the U.S. consumer retains a central role in the global economy. But a fast global jobs recovery is unlikely and the pace of hiring will depend on U.S. consumer sentiment, Manpower said.
The global employment services company said its seasonally adjusted U.S. net employment outlook was plus-6 for the first quarter, up from minus-2 in the fourth quarter. By comparison, this measure was at plus-9 in the first quarter of 2009.
The index, based on interviews with 28,000 U.S. hiring managers, measures the difference between those who say they will add to their workforce and those who plan cuts.
A full 73 percent, the most ever, reported no change in their hiring outlook, reflecting continued caution over the direction of the U.S. economy and prospects for renewed consumer spending, according to the survey released Tuesday.
"The companies surveyed are telling us that things are getting slightly better," said Manpower Chief Executive Jeff Joerres.
"They haven't seen the demand for their products and services, so they're saying, "I need to hold where I am right now.' A number that high says there is a resolve to hold on to staff even if demand is tepid."
Joerres said the survey painted the same picture of gradually improving jobs demand as the monthly government report. On Friday, the Labor Department said the economy shed only 11,000 jobs last month, far fewer than expected, while the unemployment rate slipped to 10 percent.
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An increase in temporary payrolls in the November government jobs report, and a rise in overtime hours, together indicate that some employers are coming against the limit of what they can achieve with current staff levels. They are supplementing staff with longer hours and by hiring contract labor. The manufacturing sector showed particular improvement from the prior quarter.
Manpower uses the survey results to help set its own strategy for the next three months, for example in helping determine whether to open or close branches.
Temporary jobs typically are the first to deteriorate in a downturn, and the first to improve during recovery, a classic pattern that so far appears to be repeating. That is not to suggest that a big jump in payrolls is to be expected in coming months, Joerres said.