Sun, Nov 23, 2008

Business

Outlook on jobs in 4th quarter is gloomy

By Andrea Coombes
MarketWatch
Tucson, Arizona | Published: 09.15.2008
SAN FRANCISCO — Unless you work in the oil, gas or related mining industries, the job market is unlikely to look brighter in the fourth quarter, and even retailers are glum about hiring for the upcoming holiday season, according to the latest Manpower Employment Outlook Survey.
The Milwaukee firm's quarterly survey of hiring plans found that a net 9 percent of firms expect to hire in the fourth quarter, down from 12 percent in the previous quarter, and 18 percent for the fourth quarter a year ago. This fourth-quarter outlook is the 10th consecutive quarter of declining employer sentiment in the survey — the longest such retreat in more than 20 years.
Manpower's seasonally adjusted net-employment numbers, based on a survey of 14,000 U.S. companies, measure the percentage of firms planning to hire minus those intending layoffs. Manpower doesn't measure the number of jobs. The survey's margin of error is plus or minus 0.8 percent.
Among retailers, even the upcoming holiday season doesn't offer much hope: Just 8 percent of employers in wholesale and retail trade expect to hire in the upcoming fourth quarter, the lowest figure for that sector in 17 years, said Jonas Prising, president of Manpower North America. That category includes department stores, gas stations, restaurants, discount retailers, computer stores and wholesalers, among others.
The industry's "hiring intentions are the lowest we've seen in the last 17 years. That tells you something about what they feel about end-of-year shopping sprees," Prising said. The sector "hasn't been this pessimistic for a long time."
"The decline has been gradual and is looking very, very different from what we saw in 2000, 2001," Prising said. "That was much shorter and sharper."
If employers' outlook for the first quarter of 2009 is equally grim, that would mean a new record for the Manpower survey. "The Employment Outlook Survey in the last 25 years (has not seen) more than 10 consecutive quarters of seasonally adjusted decline," Prising said. The survey has been conducted for about 40 years, but the seasonally adjusted measurement is about 25 years old, Prising said.
One sector is doing well: mining, which the Manpower survey describes as any company involved in extracting resources, including metal and coal mining companies, petroleum and natural gas extraction, stone, sand and gravel quarries, as well as related positions in those industries, such as engineering.
Twenty-six percent of companies in the mining industry expect to hire in the fourth quarter, up from 24 percent in the third quarter and 21 percent a year ago.
But other industries are seeing significant drops in hiring expectations, particularly when compared with the fourth quarter a year ago.
There is slight improvement in hiring plans in the West, with 11 percent of employers planning to hire in the upcoming quarter, compared with 8 percent in this quarter. Still, that's down from 24 percent a year ago.