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Continued optimism for US employers

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Continued optimism for US employers

20% of employers anticipate adding headcount in Q1 2016.

A quarterly survey released today by staffing giant ManpowerGroup reflects continued optimism among US employers for the start of 2016.

Taking into account seasonal variations, the survey’s Net Employment Outlook is +17%, making anticipated hiring in Quarter 1 2016 relatively stable compared to Quarter 4 2015 and last year at this time. This represents the strongest Outlook reported in Quarter 1 since 2007, when the Outlook was +18%.

"As the unemployment rate comes down and the labor market continues to tighten, employers will increasingly feel the impact of rising wages and the on-going skills mismatch."

Of the nearly 59,000 employers interviewed in 42 countries and territories across the globe, employers anticipate an increase in staffing levels in 39 countries and territories, compared with 36 of 42 in Q4 2015. Hiring prospects strengthen in 23 of 42 countries and territories when compared with Q4, but decline in 13. Compared with last year at this time, outlooks improve in 19 countries and territories, weaken in 18 and are unchanged in five.

US Results

Of the more than 11,000 US employers surveyed, 205 anticipate increasing staff levels in Quarter 1 2016. This is a 1% drop from Quarter 4 2015, but a small gain from Quarter 1 2015 when the estimated increase in hiring was 19%. Six percent of employers expect workforce reductions, and 72% expect no change in hiring plans. The final 2% of employers are undecided about their hiring intentions, resulting in a seasonally adjusted Net Employment Outlook of +17%.

"We've seen strong jobs growth in the US throughout 2015, along with declining unemployment and increasing wages, which brings a continued optimism for the start of 2016," said Jonas Prising, ManpowerGroup CEO. "We expect these broad trends to continue going into 2016, despite ongoing challenges in certain sectors like energy and manufacturing, as well as in export-driven industries. As the unemployment rate comes down and the labor market continues to tighten, employers will increasingly feel the impact of rising wages and the on-going skills mismatch."

 

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