Employment outlook strongDate posted: 6/7/14 08:30:00 AM
The job market should get a boost heading into the spring and summer, according to the 2014 Manpower employment outlook survey. The report states U.S. employers are expected to increase hiring in the second quarter of 2014, with staff reductions among the lowest in the survey history. ManpowerGroup's employment outlook survey featured responses from more than 18,000 U.S. employers.
For Jonas Prising, ManpowerGroup president, it was the diminishing expectations of worker layoffs that really turned his head.
"Although we expect measured, stable growth in new hiring for the coming quarter, the good news is that employers anticipate the lowest rate of workforce reductions in nearly four decades," Prising said. "With 92 percent of U.S. employers planning to hire or keep their staff levels steady, there is a sense of optimism that demand for goods and services is getting more predictable, allowing employers to feel more comfortable about business growth."
The report suggests that 19 percent of the nation's employers are expecting to add to their workforces, while only four percent predict a drop in payrolls during the second quarter of this year.
Meanwhile, 73 percent of employers don't think any changes will occur during the second quarter of 2014. The remaining four percent aren't sure what the second quarter has in store for their company.
"Employers who have been experiencing significant headwinds for a considerable time are now starting to feel a soft breeze at their backs, " said Jeffrey Joerres, ManpowerGroup chairman and CEO. "There is improvement across industries and across geographies. Although the improvement is still very cautious and not as robust as we've seen in the past, there are signals that confidence is starting to take hold."
Positive outlook for job seekers and the economy
For the third straight quarter, the net employment outlook is 13 percent on a seasonally adjusted basis, meaning 13 percent more people will receive jobs than lose them. It's the strongest outlook since the second quarter of 2008, when the employment outlook was 14 percent. Compared to 2013, the second quarter outlook this year is two percentage points higher.
The report stated the best industries for hiring are leisure and hospitality at 20 percent, wholesale and retail trade at 19 percent, and mining at 18 percent.
The worst industries for jobs were nondurable goods manufacturing at six percent and "other services" at seven percent.
"U.S. employers are still guarded when it comes to hiring, although the resolution of the debt ceiling issue removes some of the uncertainty," Prising said. "Hiring looks set to pick up in Mexico, especially in the mining and extraction sector. Employers here anticipate changes in the government's energy policies will expand opportunities for oil and gas companies and boost both domestic and foreign investment."
Where the jobs will be
All regions in the U.S. are expected to add workers in the second quarter of 2014. The Midwest and Northeast regions anticipate a stable hiring environment over the next three months. The South and West predict a slight surge in hiring compared to the second quarter of last year.
The best employment outlook in the country is in North Dakota, with a net employment outlook of 25 percent. Meanwhile, the strongest city was Provo, Utah, home of Brigham Young University, which reported a 29 percent positive outlook.
The report suggest that the U.S. might also start outsourcing skilled positions.
"As hiring is set to rebound in India, competition for talent is likely to prove intense," Green said. "Upturn in demand for outsourcing from the U.S. and other countries will boost prospects for individuals with engineering and programming skills."
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