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ManpowerGroup survey says US hiring to hold steady in Q3

June 14, 2016

US employers report third-quarter hiring plans remain relatively stable both quarter over quarter and year over year, according to the third-quarter 2016 Manpower employment outlook survey released today by ManpowerGroup Inc. (NYSE: MAN).

Globally, employer hiring confidence for the third quarter is strongest in India, Japan, Taiwan, Guatemala, Romania and the US. The weakest forecasts are reported in Brazil, Italy and Switzerland.

ManpowerGroup’s survey found 23% of US employers plan to increase staff in the third quarter, up 1% from the prior quarter’s forecast; 5% plan to decrease staff, 71% expect no change in staff and 1% are undecided about their hiring intentions. That results in a net employment outlook of 15% when seasonally adjusted. In comparison, the second-quarter employment outlook was 16% with seasonal adjustment.

“Although employers have been increasingly cautious for the last three quarters, the US hiring outlook is among the strongest globally, and we expect to see modest improvements in the labor market throughout most of the country,” said Kip Wright, senior VP of Manpower in North America. “This is good news for job seekers and organizations; as the competition for talent heats up, the way in which companies engage individuals is more critical than ever. Employers need to ensure they have the skills and resources they need — right when they need them.”

Employers in Maine, Idaho, Montana, Delaware, Oregon and Kentucky report the strongest net employment outlooks, while Louisiana, New Jersey, Oklahoma, Nevada and Wyoming project the weakest outlooks.

Employers in 12 of the 13 industry sectors reported a net positive outlook. The industries with the highest seasonally adjusted net employment outlooks are leisure and hospitality at 23%, wholesale and retail trade at 20%, transportation and utilities at 19%, and professional and business services at 18%. Employers in the mining sector expect payrolls to decline, reporting an outlook of -4%

Regionally, employers in the Midwest, Northeast and South anticipate a slight decrease in hiring quarter over quarter, while employers in the West expect hiring to remain relatively stable. Employers in the West region reported the strongest seasonally adjusted outlook at 17%, followed by the South at 16%. The Midwest and Northeast reported seasonally adjusted outlooks of 15% and 14% respectively.

Compared to the same time last year, the outlook is relatively stable in the Northeast and the West, and declines slightly in the Midwest and South.

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

Canada hiring trends

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

In Canada, 16% of employers expect to increase staffing levels, 5% anticipate a decrease, 78% forecast no change and 1% are unsure about hiring plans. This results in a net employment outlook of 5% on a seasonally adjusted basis, a decrease of one percentage point when compared to the previous quarter and down four percentage points when compared to the same quarter last year.

“Nationally, employment gains are expected to be modest in the third quarter,” said Darlene Minatel, VP, Manpower Canada operations and strategic accounts. “However, we are seeing some bright spots. The Canadian dollar’s prolonged low has been good news for the manufacturing industry. Increased demand for Canadian exports is a big reason the manufacturing durables sector is expecting the largest quarterly employment growth of any sector for Q3.”

Survey results for the third quarter of 2016 show that job seekers across Canada should expect varying degrees of hiring. Employers in Ontario and Quebec expect the most encouraging hiring climate for the coming quarter, with both reporting a net employment outlook of 7%. Employers in Western Canada anticipate a mild hiring climate, reporting an outlook of 5%, while those in Atlantic Canada expect a limited hiring pace, reporting an outlook of just 4%.

The industries with the highest seasonally adjusted net employment outlooks public administration at 12%, manufacturing durables at 9% and services at 8%. Mining had the lowest seasonally adjusted net employment outlook at -1%.

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