U.S. employers anticipate favorable hiring plans for the third quarter of 2010, marking three straight quarters of positive survey findings, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey, conducted quarterly by Manpower Inc.
Employers provided a seasonally adjusted Outlook of +6 percent, up from -2 percent during the same period last year. Ninety-eight percent of U.S. states have a positive hiring Outlook and 95 of the nation's 100 largest Metropolitan Statistical Areas have a positive Outlook for Quarter 3 2010.
"We have been waiting for the labor market to show signs of a sustained recovery," said Jeff Joerres, Manpower Inc. chairman and CEO. "The survey results for the third quarter are indicating a trend of hiring intention that has historically proven to be the positive inflection point of accelerated job growth."
Of the more than 18,000 employers surveyed, 18 percent anticipate an increase in staff levels in their Quarter 3 2010 hiring plans, while 8 percent expect a decrease in payrolls, resulting in a Net Employment Outlook of +10 percent. When seasonally adjusted, the Net Employment Outlook becomes +6 percent. Seventy percent of employers expect no change in their hiring plans. The final 4 percent of employers indicate they are undecided about their hiring intentions.
"Manpower's survey results show a positive trend in employers' hiring plans," said Jonas Prising, Manpower president of the Americas. "Although we are still facing a difficult labor market, more employers indicate confidence about the direction of their businesses, and with that comes an intention to increase their workforces. We are in the early stages of the jobs recovery, and although we have a long way to go, the job market will continue to improve from here."
Employers in 11 of the 13 industry sectors surveyed have a positive Outlook for Quarter 3 2010: Leisure & Hospitality (+20 percent), Mining (+17 percent), Professional & Business Services (+15 percent), Wholesale & Retail Trade (+15 percent), Non-durable Goods Manufacturing (+12 percent), Financial Activities (+11 percent), Information (+10), Durable Goods Manufacturing (+9 percent), Transportation & Utilities (+9 percent), Construction (+8 percent) and Other Services (+8 percent). The July-September Outlook is -2 percent for two of the surveyed industry sectors: Education & Health Services and Government.
Compared to one year ago, employers in all four U.S. geographic regions surveyed anticipate hiring increases. Employers in the Northeast have the brightest hiring intentions, with a Net Employment Outlook of +9 percent. When adjusting for seasonal variations, Midwest employers report the strongest shift for Quarter 3 2010, with a considerable increase in confidence year-over-year and a slight increase quarter-over-quarter. Compared to Quarter 2 2010, employment prospects are stable in the Northeast and South, while slightly slackening in the West.
* The Net Employment Outlook, often shortened to simply Outlook or NEO, is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity.