Survey Says Companies to Hire Fewer Workers
A survey to be released today will say U.S. companies’ plans for hiring workers have shrunk to their lowest levels since the recessionary years of 1982 and 1991.
Otherwise, the flow of economic data will be light this week because of the Thanksgiving holiday Thursday.
About 16% of the firms interviewed said they planned to add jobs during the first quarter of next year, and an additional 16% said they anticipated cutting staff during the same time, according to Manpower Inc.’s quarterly survey of 16,000 American businesses.
That compares with 27% that planned to increase employment and 10% that anticipated cutbacks a year ago.
The other firms said they would maintain staffing levels or were uncertain about hiring activity.
The figures continue a decline in hiring strength that began last spring. They approximate those of 1982 and 1991, when hiring levels reached historic lows in the survey’s 25-year history, said Jeffrey Joerres, chief executive and chairman of Glendale-based Manpower, the nation’s largest staffing company.
“While we don’t like the results, they’re not coming as much of a surprise,” Joerres said. “We’ve been heading down for some period of time, and it will take some period of time to reverse this.”
It’s too early to say what kind of effect the terrorist attacks have had on hiring, but Sept. 11 could have sped up an already downward trend, Joerres said.
A decline in hiring manufacturing jobs will continue as 21% of durable goods manufacturers said they planned to cut jobs and 15% of other manufacturers anticipated cutbacks in the first quarter, the survey found. Durable goods are costly manufactured items, such as farm equipment and industrial machinery, expected to last at least three years.
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Other economic reports due this week:
* Tuesday, the Conference Board will issue its index of leading economic indicators for October.
* Wednesday, the University of Michigan will release its closely watched index of consumer sentiment for November. If the index is higher, it would be the second consecutive increase since the index fell to an eight-year low in September.
