WorkForce21   Manpower 4th Quarter 2001 Hiring Report

For Release Monday, August 27, 2001 12:01 a.m. EDT EMPLOYMENT OUTLOOK REMAINS DIM Employment activity is expected to remain near historically low levels in the final quarter of the year, according to a survey of nearly 16,000 U.S. firms. Results of the Employment Outlook Survey conducted quarterly by Manpower Inc. indicate that 24% of companies interviewed expect to add employees in the fourth quarter, while 11% will reduce their workforce. No change is anticipated by 60% and 5% are uncertain. In the prior quarter, 27% projected increases and 9% planned reductions. The fourth quarter outlook represents a precipitous decline from the levels of the final three months of last year when 32% said they would add workers and only 7% projected declines. Removing the impact of seasonal variations reveals a sequential decline in projected hiring strength that began after the first quarter of 2001 and continued throughout the year. According to Jeffrey A. Joerres, Manpower Chairman and CEO, "While the new figures show a modest decline from last quarter on a deseasonalized basis, we see no clear evidence of a trend reversal in hiring in the months ahead. The key segments of Durable and Non-Durable Goods Manufacturing project year-end hiring at levels approaching those experienced in the recession years of 1981 and 1991. The Services industry which had shown resistance to declines in earlier quarters is now indicating hiring plans at historical recession levels as well." The new hiring is to be largely in seasonally active sectors. Joerres cited the holiday season staffing among Wholesale & Retail Trades and the traditionally brisk year-end activity among Education employers as examples. Seasonal considerations also impacted regional results. The South, where winter weather curtailments are few, is more optimistic than other regions.   CONSTRUCTION: The 22% adding workers and 14% trimming down do not represent a consistent national demand. Wintertime opportunities exist primarily in the South and West. MANUFACTURING—DURABLE GOODS: Only in 1982 was the year-end outlook weaker than at present. Only 20% plan on increasing staff and 16% will decrease. MANUFACTURING—NON-DURABLE GOODS: Current prospects are below even a modest seasonal variation from the low third quarter level as only 19% expect further recruiting and 13% continue to slim down. TRANSPORTATION & PUBLIC UTILITIES: The gradual quarter-to-quarter decline continues for the fourth time as 20% report plans for higher staffing levels and 9% seek reductions. WHOLESALE & RETAIL TRADES: As usual, this sector is the year-end national leader with 35% boosting holiday season hiring and 9% planning decreases. FINANCE, INSURANCE & REAL ESTATE: The 18% anticipating increases is the lowest of any industry in the coming quarter. A total of 9% expect to shrink employment rolls. EDUCATION-PUBLIC & PRIVATE: Fourth quarter is the traditional hiring season in this field and the forecast of 24% searching for additional people and 6% intending cutbacks is one of the most optimistic in the nation. SERVICES: The bubble that existed from mid-1997 through the last quarter now seems to have burst as 22% continue to recruit, but 11% foresee staffing decreases. PUBLIC ADMINISTRATION: A drop in employment among government units from last quarter is of seasonal proportion as 19% will require more people, but 10% will shed staff. THE EMPLOYMENT OUTLOOK SURVEY Manpower Inc. conducts the Employment Outlook Survey on a quarterly basis. It is a measurement of employers' intentions to increase or decrease the permanent workforce, and during its 25-year history has been a significant indicator of employment trends. The survey is based on telephone interviews with nearly 16,000 public and private employers in 485 U.S. markets. For more information, visit Manpower's Web site at www.us.manpower.com. Manpower Inc. is a world leader in the staffing industry, providing workforce management services and solutions to customers through 3,800 offices in 59 countries. The firm annually provides employment to more than 2.7 million people worldwide and is an industry leader in employee assessment and training. Manpower also provides a range of staffing solutions, engagement and consulting services worldwide under the subsidiary brands of Brook Street, Elan, The Empower Group and Jefferson Wells.