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ManpowerGroup survey finds US hiring plans remain stable in Q1

December 13, 2016

US employers’ hiring plans for the first quarter of 2017 are relatively stable, according to the latest Manpower Employment Outlook Survey released today by ManpowerGroup Inc. (NYSE: MAN).

Globally, employer hiring confidence for the first quarter is strongest in Taiwan, India, Japan, Hungary and Slovenia. The weakest forecasts are reported in Brazil, Switzerland and Italy.

ManpowerGroup’s survey found 19% of US employers plan to increase staff in the first quarter, down 3% from the prior quarter’s forecast and down 1% from the first quarter of 2016; 6% plan to decrease staff, 73% expect no change in staff and 2% are undecided about their hiring intentions. This results in a net employment outlook of 16% when seasonally adjusted, a decrease from 18% in the fourth-quarter outlook and 17% in the outlook reported for Q1 2016.

“In the wake of recent political events the majority of US employers are now cautiously optimistic and intend to increase or keep their headcount stable for the next three months,” said Kip Wright, senior VP, Manpower North America. “This a positive sign for job seekers and the economy at the start of 2017. But not all skills are created equal. We continue to see significant differences between industries and employers demanding increasingly specific skills to fill positions. Ensuring people can prosper and businesses can compete depends on developing a US workforce that is prepared for the jobs of today, tomorrow and the future.”

Employers in Oregon, Hawaii, Florida, Iowa, California and Oklahoma report the strongest net employment outlooks, while Wyoming, Puerto Rico, North Dakota, West Virginia and Montana project the weakest outlooks.

Employers in all 13 industry sectors expect payrolls to increase. The industries reporting the strongest hiring intentions are leisure and hospitality at 27%, wholesale and retail trade at 20%, transportation and utilities at 19%, and professional and business services at 17%.

Regionally, net employment outlooks remained relatively stable in three of the four US regions surveyed when compared with the fourth quarter; hiring prospects decreased slightly in the South. Employers in the West region reported the strongest seasonally adjusted outlook at 18%, followed by the Northeast at 17%. The South and Midwest reported seasonally adjusted outlooks of 16% and 15% respectively.

Compared to one year ago at this time, hiring plans are relatively stable in the Northeast and South, decrease slightly in the Midwest and are unchanged in the West.

ManpowerGroup’s employment outlook survey includes responses from more than 11,000 US employers.

Canada hiring trends

Canadian employers anticipate a “respectable” hiring climate in the first quarter, with employers in the public administration sector reporting the strongest job prospects, according to ManpowerGroup’s data for Canada.

In Canada, 12% of employers expect to increase staffing levels, 6% anticipate cutbacks, 79% forecast no change and 3% are unsure about hiring plans. This results in a net employment outlook of 11% on a seasonally adjusted basis, the strongest in three years and an increase of two percentage points over the fourth-quarter outlook and up four percentage points from the same quarter last year.

“The hiring climate is expected to be steady heading into the first quarter of 2017, led by a strong public administration sector and gains in manufacturing,” said Darlene Minatel, VP, Manpower Canada operations and strategic accounts. “While there are still some areas of concern, oil prices are recovering from their recent lows, the continued weakness in the Canadian dollar is a boon for exports, and Alberta is beginning to rebound after the damage caused by the Fort McMurray wildfires. Job seekers have reason to be optimistic in the quarter to come.”

Survey results for the fourth quarter of 2016 show that job seekers across Canada should expect varying levels of hiring activity. Employers in Quebec expect the most hopeful hiring climate for the coming quarter, reporting a net employment outlook of 10%. Employers in Ontario and Western Canada anticipate a moderate hiring pace, with both regions expecting an outlook of 9%, while job seekers in Atlantic Canada should plan for a modest hiring climate, with employers reporting an outlook of 8%.

The industry with the highest seasonally adjusted net employment outlook was public administration at 20%. Mining had the lowest seasonally adjusted net employment outlook at 3%.

ManpowerGroup’s employment outlook survey includes responses from more than 1,900 Canadian employers.