Hiring Expected to Be Strong in Summer

U.S. businesses are expected to continue their high levels of hiring this summer, according to a survey released Monday by temporary staffing firm Manpower Inc.

Milwaukee-based Manpower’s quarterly employment survey of more than 15,000 companies nationwide showed that 32% of those interviewed intend to increase their work force this summer, while only 5% plan staff reductions. Fifty-nine percent expect to maintain their current staffing levels.

In comparison, 30% of firms surveyed a year ago anticipated summertime increases and 5% planned for decreases. Those were also the figures for the spring months of 1998.

Manpower’s survey, a highly regarded indicator of economic growth, comes at a time when nationwide unemployment is at 4.3%, the lowest it has been since 1970. With so few people out of work and looking for jobs, companies are having to employ increasingly creative techniques to attract and retain qualified workers.

At the same time, the survey results provide little support for forecasters and policymakers who are predicting that economic growth will slow in coming months. In the first three months of 1998, the economy grew at a 4.2% rate adjusted for inflation, but some analysts have recently suggested that will drop to 2% or 3%.

Manpower’s study asked employers about their intentions to hire workers during July, August and September--but in today’s tight labor market, it’s less clear than usual that those plans will be met.

Manpower Chief Executive Mitchell S. Fromstein said the latest data do not represent a dramatic change from the trends of the last year. Instead, it shows a “clear continuation of significant job growth across the nation,” he said.

“We’re seeing the strongest indication of net hiring strength since the third quarter of 1978, when 34% of firms intended to hire and 6% planned decreases,” Fromstein said. “There are still more jobs to fill than qualified people to fill them.”

The survey found that the retail and service industries, in particular, are searching for workers. For example, 36% of retail companies expect to conduct further recruiting this summer, while only 4% plan to trim their staffs. This represents the brightest hiring outlook for the industry in two decades, Manpower said.

The retail industry, perhaps more than any other, is having trouble finding enough workers. Some retailers have responded by increasing wages, only to find that such a lure alone doesn’t get results. They’ve also had to advertise more, host job fairs, offer workers shorter shifts and look to nontraditional labor pools such as senior citizens.