U.S. companies' hiring intentions for the first quarter of 2006
look relatively strong, continuing a pattern that began two years ago, according
to a quarterly survey Manpower Inc. plans to release today.
The employment-services company's survey of 16,000 employers
found 61% expected to make no change in the size of their work forces compared
with the current quarter; 23% expect to increase hiring. Of those surveyed, 10%
said they expect to cut payrolls, and 6% were unsure. The percentage of those
who expect no change is up slightly from expectations leading into the quarter,
but Jeffrey Joerres, chairman and chief executive of Manpower, said it is too
early to tell what that could mean. Employers often are cautious about hiring at
the start of a year, he said.
Still, the forecast for January through March marks the eighth
consecutive quarter that hiring expectations have signs of strength, with a
seasonally adjusted 20% of employers, on a net basis, saying they plan to add to
their payrolls, according to Milwaukee-based Manpower. The net employment
outlook reflects the difference between the percentage of employers who expect
to add to payrolls and those who expect to reduce them.
The survey indicates employers aren't looking to aggressively
ramp up hiring but still see demand, prompting many of them to continue adding
employees. "When you look at the national picture, this is relatively good
news," Mr. Joerres said.
Compared with expectations a year earlier, employers in five of
10 sectors expressed waning confidence about hiring in the coming quarter,
Manpower said. However, despite concerns about a possible housing bubble, the
construction sector topped the list for expected increases in hiring, with its
most optimistic forecast in 27 years, Mr. Joerres said. The construction
sector's confidence extended beyond the South, where rebuilding from Hurricane
Katrina is under way. In the West, for example, a third of construction
employers said they expect to hire next quarter.
Employers in the South and the West expressed stronger hiring
expectations than in the current quarter, while those in the Northeast expected
the pace of hiring to slow, according to the survey. The Midwest showed little
change in its expectations.