More USA Employers Reducing Payrolls

For people hoping to work in the United States, the current financial crisis is reducing the number of job opportunities. Most American employers now have no plans to hire new staff, at least in the remaining months of 2008.

Only 22 percent of American employers expect to increase their staff levels during the October to December period, while 13 percent expect to reduce their payrolls. Of the 14,000 employers surveyed by Manpower in the United States most employers (59 percent) expect no change in hiring and 6 percent are undecided.

“The continuing softness in hiring activity comes as no surprise as weakening market conditions are causing many companies to carefully adjust their hiring in line with the demand for their product or service,” said Jeffrey A. Joerres, Chairman and CEO of Manpower.

Durable and Non-Durable Goods Manufacturing, Transportation/Public Utilities, Wholesale/Retail Trade, Finance/Insurance/Real Estate and Services employers all expect decreased hiring activity during the upcoming quarter.

Employers in the Construction, Education and Public Administration sectors indicate stable hiring conditions.

Mining remains the only sector looking to increase staff levels for the upcoming quarter.

“Despite the current business environment and the uncertainty that often comes with pending elections, the near-term employment outlook appears to have stabilised in some industry sectors and continues to grow in Mining, creating potential opportunity for job seekers,” said Jonas Prising, President of Manpower North America.

Employers in the Northeast and Midwest anticipate weakening hiring conditions, while the South is moderately less optimistic compared to Quarter 3 2008. Employers in the West are slightly more optimistic about hiring plans in the upcoming quarter.

The global survey data reveals that employers in India, Costa Rica, Peru, Singapore, Taiwan, Colombia, Romania, Poland, Argentina, Australia and South Africa report the most favourable fourth-quarter hiring plans. Conversely, employers in Spain, Ireland and Italy are reporting the weakest and only negative hiring expectations for the quarter ahead.

It would appear that the growing pessimism seen in the U.S. market over the past two quarters has moved eastward into Asia Pacific as employers in the region have become notably more conservative in their hiring plans. While outlooks remain positive, employers across all of the eight countries and territories surveyed expect to pull back on hiring from the third quarter. On the other hand, compared to one year ago, the pace of hiring is expected to improve in India and Taiwan, and remain relatively stable in China.