Surveys Show Unemployment Likely To Rise

Milwaukee, WI, March 10, 2009--U.S. employers are projecting a considerably slower hiring pace for second quarter, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey, conducted quarterly by Manpower Inc.

In a separate report, Bloomberg News said its own survey indicates unemployment will rise to 9.4 percent this year and remain high through 2011. That number was revised up from 8.8 percent a month earlier.

"A significant number of employers surveyed anticipate 'no change' in their employment intentions for the upcoming quarter," said Manpower CEO Jeffrey A. Joerres.

"This tells us that in this difficult economic environment, employers are attempting to manage the tension between generating a profit and maintaining their workforce infrastructure."

Of the 31,800 employers surveyed, 15 percent anticipate an increase in their staff levels during the quarter, while 14 percent expect a decrease in their payrolls. Sixty-seven percent of employers surveyed expect no change in their April - June hiring plans. Another 4 percent are undecided.

"We know that companies are having great difficulty forecasting consumer demand right now and that's a key impediment to hiring," said Jonas Prising, Manpower president, the Americas.

The national survey data shows employers in a majority of the industry sectors surveyed anticipate decreasing their payrolls compared to three months ago.

Each of the four U.S. regions surveyed expects weaker employment outlooks compared to last quarter and last year.

Hiring in the Northeast is expected to be the strongest, while employers in the Midwest and West are less optimistic.

Employers in the South, who reported the strongest hiring outlook in first quarter anticipate the weakest hiring pace in the second quarter.