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STRICT EMBARGO FOR 13 December 2005.
FOR GLOBAL REPORTS AND GRAPHS VISIT www.manpower.com/meos
MANPOWER MEDIA RELEASE
Contact: Manpower Press Office, Raymond Wang, Tel: +86 21 58782618 ext. 224
CHINESE EMPLOYERS REPORT POSITIVE HIRING INTENTIONS OVER CHINESE NEW YEAR
- Employers in five of six industry sectors expect increased hiring activity in Q1 2006 -
13 December 2005
Chinese employers anticipate steady hiring activity over the Chinese New Year period, across all industry sectors. This is according to the Manpower Employment Outlook Survey, the most extensive, forward-looking employment survey in the world, gathering data from more than 45,000 employers globally; including 13,000 from Asia Pacific.
The Q1 2006 Net Employment Outlook for China, the figure derived by taking the percentage of employers anticipating an increase in hiring activity less the percentage of employers that expect to see a decrease in employment prospects, is +12%, up 3 percentage points from last quarter but down 19 percentage points from when the survey first began in China in the second quarter of 2005. This is the first time a first quarter outlook has been recorded for China.
The survey of over 3,100 Chinese employers shows continued optimistic hiring intentions anticipated across all industry sectors, particularly in the Transportation and Utilities industry sector where employers report an Outlook of +18%. This industry sector is the only one to see employers record a quarter-over-quarter decrease in hiring activity. Nevertheless, the sector has benefited from overseas investment and remains the most positive industry sector for employment prospects in China for the second consecutive quarter.
“China’s labor market has returned to the optimistic outlook reported by employers in the third quarter of 2005, indicating that business confidence is strong,” says Lucille Wu, Country Manager for Manpower China. “China will soon be the largest market in the world for consumer goods and will have a strong workforce to service this, but at the moment employers are finding it difficult to source people who are job ready. Manpower’s recent partnership with the Chinese labor authorities is helping employers overcome their recruitment challenges.”
Expected activity around Chinese New Year has prompted employers in the Wholesale & Retail Trade sector to report the greatest quarter-over-quarter improvement (6 percentage points) in hiring expectations, where the Outlook stands at +16%. Employers are least optimistic in the Manufacturing and Finance/Insurance/Real Estate sectors, both with Outlooks of +10% (up 3 and 2 percentage points respectively from last quarter). Slightly more than six out of 10 employers interviewed (61%) expect no change in hiring activity for the first quarter of 2006.
“Two-thirds of foreign businesses in China have made profits and two fifths of multinational enterprises in China have reported a profit margin larger than their global average,” explains Wu. “Manpower China is well positioned to serve the needs of these buoyant industry sectors and the demand for our services continues to grow.”
Employment prospects are positive in all countries and territories surveyed by Manpower in Asia Pacific, with employers in Australia, China, Hong Kong, Japan, New Zealand and Taiwan reporting improved Net Employment Outlooks compared to the final months of 2005. Indian employers once again reported the most optimistic hiring expectations in Asia Pacific and among the other 22 countries and territories surveyed internationally. Employers in Singapore are least optimistic in the region with a considerable slowdown expected in the first quarter. Notably, employers in Australia and Japan reported their most positive first quarter Net Employment Outlooks since the survey began in their region in Q3 2003.
In the Americas seasonally adjusted data indicates that slightly slower hiring is expected in six of 10 U.S. industry sectors for Q1 2006, but the overall outlook for the U.S. is strong. Canadian employers, also expect a healthy hiring pace but just slightly below the rate reported last year. In Mexico employer hiring expectations improved moderately from the first quarter of 2005.
European employers’ first-quarter hiring plans, with the exception of the UK, Norway and Ireland, are reserved. Year-over-year, the Net Employment Outlooks have decreased in seven of the 12 countries surveyed and the outlooks have decreased in 10 countries since Q4 2005. Employer hiring expectations are strongest in the UK, Norway and Ireland. The least optimistic and only negative employment prospects were reported by employers in Germany, Austria and Italy. While the German Outlook worsened from last quarter, the first quarter Outlook is slightly improved from one year ago. Employment prospects in France are the most conservative they have been since the survey was established.
Ends
NOTES TO EDITORS
A ‘Net Employment Outlook’ is calculated by subtracting those employers who plan to reduce staffing levels from those who plan to hire staff. A positive result indicates that more employers plan to increase rather than decrease staffing levels; a negative result reflects the opposite.
Commentary and full details on every sector and region can be found in the survey report at www.manpower.com or by calling the Manpower China Office Tel: +86 21 58782618 ext. 224
For international comparisons and visual library with graphs, visit www.manpower.com.
Full survey results for each of the 23 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found in the Manpower Press Room at www.manpower.com/meos. In addition, all tables and graphs from the full report are available to be downloaded for use in publication or broadcast from the Manpower Online Visual Library, also located in the Press Room on power.com/library.
About the Survey
The Manpower Employment Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. It is the only forward-looking survey of its kind, unparalleled in its size, scope, longevity and area of focus. The Survey has been running for more than 40 years and is one of the most trusted surveys of employment activity in the world. The Manpower Employment Outlook Survey is based on interviews with more than 45,000 public and private employers worldwide and is considered a highly respected economic indicator.
The Manpower Employment Outlook Survey is currently available for 23 countries and territories: Australia, Austria, Belgium, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. The program began in the United States and Canada in 1962, and the United Kingdom was added in 1966. Mexico and Ireland launched the survey in 2002, and 13 additional countries were added to the program in 2003. New Zealand joined the program in 2004 and China, India, Switzerland and Taiwan were added in 2005. For more information, visit the Manpower Inc. Web site at www.manpower.com and enter the Press Room.
About Manpower
Manpower Inc. (NYSE: MAN) is a world leader in the employment services industry, offering customers a continuum of services to meet their needs throughout the employment and business cycle. The company specializes in permanent, temporary and contract recruitment; employee assessment; training; career transition; organizational consulting services; and professional financial services. Manpower’s worldwide network of 4,300 offices in 72 countries and territories enables the company to meet the needs of its 400,000 customers per year, including small and medium size enterprises in all industry sectors, as well as the world’s largest multinational corporations. The focus of Manpower’s work is on raising productivity through improved quality, efficiency and cost-reduction, enabling customers to concentrate on their core business activities. In addition to the Manpower brand, the company operates under the brand names of Right Management Consultants, Jefferson Wells and Elan. More information on Manpower Inc. is available at www.manpower.com.
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