WASHINGTON (MarketWatch) — Employers are expecting to hold hiring steady in the second quarter, with gains in a wide variety of industries and across the country, according to Manpower’s employment-outlook survey released Tuesday.
A seasonally adjusted net 11% of employers said they plan to add to their workforce in the second quarter, down one percentage point from the first quarter but up one point from the same period in the prior year.
“This reflects what we have been seeing for years — employers are gaining confidence … but we continue to see hesitancy,” said Melanie Holmes, a vice president at ManpowerGroup, a workforce-services provider.
The Manpower report, based on interviews with more than 18,000 employers in the U.S., measures the percentage of firms planning to hire minus the percentage of those intending layoffs. Manpower doesn’t measure the number of jobs. When the job market is healthy, the net level is about 20% to 25%.
Most firms expect no change in their staff levels for the second quarter.
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On an unadjusted basis, a net 13% of employers said they plan to add to their workforces in the second quarter — 18% expect to increase and 5% expect to decrease. That 5% represents the smallest share expecting a decrease since 2000. “This is an indicator of stability,” Holmes said.
Manpower’s report echoes other recent data that signal a strengthening labor market. Last week the U.S. Department of Labor reported that nonfarm employment expanded by 236,000 jobs in February after gaining 119,000 positions in January, pushing the jobless rate down to 7.7%. See full story on the government’s nonfarm-payrolls report for February.
Leisure and hospitality lead
Looking at the Manpower survey by industry sector, all 13 sectors enjoy a net positive employment outlook for the second quarter, led by leisure and hospitality. These data aren’t seasonally adjusted, and it makes sense that leisure and hospitality employers expect to ramp up staff for warmer months.
Only three of the industry sectors reported a less positive outlook for the second quarter than for the first quarter.
“This is really a broad-based positive outlook,” Holmes said.
Here is the net employment outlook for the second quarter, in declining order from the most positive outlook:
Leisure and hospitality, 24% net positive in the second quarter, up from 14% in the first quarter
Professional and business services, 18%, up from 13%
