Manpower: Continued Caution in Employment Outlook

Milwaukee, WI, June 12, 2007--Employers plan to maintain a cautious approach toward hiring during the third quarter of 2007, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey conducted quarterly by Manpower Inc.

"The survey suggests that it will be a cool summer when it comes to hiring in the U.S.," said Jeffrey A. Joerres, Chairman & CEO of Manpower Inc. "Employers are holding steady with their employment projections for the third quarter and taking a wait-and-see approach as they begin to look toward year-end."

Of the 14,000 U.S. Employers surveyed, 29% expect to increase their workforces during the third quarter of 2007, while 7% expect to trim their payrolls. Fifty-eight percent expect no change in the hiring pace, and 6% are undecided about their hiring plans.

The seasonally adjusted survey results show that hiring activity in nearly all industry sectors surveyed is expected to remain steady during the summer months of 2007. Employers in Construction, Durable and Non-Durable Goods Manufacturing, Transportation/Public Utilities, Finance and Services all foresee a hiring climate that is unchanged from the second quarter forecast, while Mining, Wholesale/Retail Trade and Public Administration employers anticipate a slight decrease in the hiring pace. Despite the decline in Mining, employers in this industry sector have the most optimistic staffing plans for the upcoming quarter.

"In general, employer optimism about hiring is expected to hold firm in the third quarter across most industry sectors," said Jonas Prising, President of Manpower North America. "However, employers in select industries are losing confidence about adding employees including those in the Construction, Wholesale/Retail Trade and Finance/Insurance/Real Estate sectors. The third-quarter hiring projections are a sign that the moderate decline in these industry sectors is likely to continue through the next three months."

Within the four U.S. regions surveyed, job prospects are strongest in the West. Employers in the Northeast continue to be the least optimistic about hiring -- most notably in the Non-Durable Goods Manufacturing sector, where there is a significant weakening in job prospects. A quarter-over-quarter analysis indicates that employers in the West are more optimistic about hiring for the third quarter, while those in the Midwest and South expect little change in their staffing plans. In the Northeast, companies are slightly less likely to increase headcount compared with second quarter.

In addition to the United States, the Manpower Employment Outlook Survey is conducted in 26 other countries and territories. The quarterly report from Manpower Inc. is the most extensive, forward-looking employment survey in the world, gathering data from nearly 50,000 employers across the globe each quarter.

Among global employers, third quarter hiring is expected to be positive in all of the 27 countries and territories surveyed, with employers in Germany and Norway reporting their most optimistic hiring plans since the survey began in these countries in 2003, based on seasonally adjusted data. Meanwhile, the Asia Pacific labor market is expected to cool from three months ago, with the exception of India, where employer demand has bounced back after a dip reported in the second quarter.

The strongest third quarter hiring prospects reported globally were in Singapore, Peru, India, Argentina, New Zealand, Australia, Norway, Costa Rica, Japan and Hong Kong. Conversely, employers in Italy, Belgium and France expect to offer the fewest employment opportunities. Compared with second quarter, employers in 15 countries and territories are reporting weaker hiring plans for the July through September period. A more positive story emerges in the year-over-year comparison, where 14 countries report improved hiring plans.

In the Europe, Middle East and Africa (EMEA) region, job prospects are strongest in Norway, South Africa, the UK, Germany, Sweden and Switzerland, with eight European countries expecting to increase the hiring pace from a year ago. Italian employers reported the weakest, but still positive, hiring expectations in the region. However, Irish employers expect to slow hiring considerably from the second quarter and last year.

Of the six countries surveyed in the Americas, employers in Peru and Argentina are again the most optimistic about adding to their workforces, with Peruvian employers expecting a considerable increase in hiring compared to third quarter of 2006. The hiring pace is expected to be slightly weaker from one year ago in Canada, Costa Rica and the U.S.

Employer hiring projections for the eight countries and territories surveyed across the Asia Pacific region are weaker when compared to the second quarter (but still positive), with the exception of India. The strongest outlooks were reported in Singapore, India, New Zealand and Australia. Employers in Taiwan expect to offer the fewest employment opportunities.

The next Manpower Employment Outlook Survey will be released on September 11, 2007, to report hiring expectations for the fourth quarter of 2007.