Hiring Expected to Cool a Bit Through Summer : Economy: A survey of 15,000 firms finds a net 21% planning to increase their payrolls.
The pace of new hiring will slacken this summer while remaining generally strong, a survey released today predicts.
The survey by Milwaukee-based Manpower Inc. found that 28% of 15,000 companies polled in the quarterly survey said they plan to increase hiring in the July-August period, while 7% said they expect to cut their payrolls.
The projected 21% net total planning to increase hiring is down from 22% in the same quarter last year and 23% for the previous three months.
“While a note of caution is discernible in the results, confirming other indications of a pause in economic growth, opportunities will be there for job seekers this summer,” said Mitchell S. Fromstein, Manpower’s chief executive.
The telephone survey of public and private employers found that 62% plan no changes in hiring and 3% are uncertain of their plans.
The expected decline in the rate of hiring in the summer underlines other data showing the U.S. economy is slowing and the job market weakening--with the unemployment rate and new claims for jobless benefits rising and fewer new jobs being created.
The nation’s jobless rate soared to 5.8% in April, the highest rate in seven months, as the number of payroll jobs slipped by 9,000--the first decline since a 52,000 decrease in March, 1993.
The number of newly laid-off workers seeking unemployment insurance shot up by 13,000 the week ended May 20 to a seasonally adjusted 380,000--the highest since claims totaled 385,000 during the week ended last July 16.
The survey by Manpower looks at 10 sectors of the economy. The best job growth is projected in the highly seasonal construction industry, where a net total of 33% of businesses polled plan to increase their payrolls.
Executives in wholesale and retail trades were also upbeat. Manpower said a net total of 27% of those businesses plan new hires. And a net total of 26% of companies that make durable goods--products such as computers, appliances and cars--plan hiring increases.
Most pessimistic are the education and mining sectors, where a net total of 5% and 6% respectively plan hiring increases, the survey found.
Geographically, confidence is highest in the Midwest, where a net total of 27% of companies expect to hire additional workers, Manpower said. The Northeast and the West were softest with 18% net increases.
No margin of error was given for the survey.
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