Manpower survey: Skittish employers plan to hold off on hiring, or shrink their work force.
Nathan Hurst / The Detroit News
December 11, 2007
Metro Detroit employers will be paring back job offers during the first quarter of 2008, a sign that Michigan's growing pool of jobless workers won't find it easy getting work anytime soon.
While 13 percent of employers told the quarterly Manpower Employment Outlook Survey they expect to increase their work forces in the first three months of next year, 56 percent said their payrolls would remain steady and 18 percent said their hiring will slow down.
"It all has to do with the economy," said Annette Apsley, a staffing specialist at Manpower Inc., the Milwaukee-based employment agency that conducts the quarterly survey. "Many companies are nervous about what's yet to come."
The Manpower survey, which was to be released today, shows employers in southeastern Michigan remain nervous about the region's near-term economic future, which is plagued by a sagging housing sector, a credit-market crunch and an exodus of manufacturing jobs. At 7.7 percent in October, the state's unemployment rate is the worst in the nation.
In the survey, only Oakland County showed signs of increased hiring in the next quarter. Some 10 percent of employers there predicted they'll add workers in the first three months of 2008. Employers in Wayne, Macomb and Livingston counties said they expect respective decreases of 14 percent, 7 percent and 33 percent in hiring, according to the survey.
The dour outlook follows brighter predictions made in September for hiring during the fourth quarter of 2007. Then, more Metro Detroit businesses surveyed said they'd be adding workers in October, November and December.
'Firms want to be careful'
Employers have quite a bit to worry about, said Don Grimes, senior economic researcher at the University of Michigan.
"Right now, everybody's being really cautious, especially with so much talk of a recession," Grimes said Monday. "Firms want to be careful. They want to wait and see exactly how things'll shake out."
Grimes said many experts see the next quarter as a turning point for the nation's economy. Until employers see which way it's headed, many are likely to hold off on any expansion of their work forces.
In many cases, companies are looking to see if earlier job cuts at the Detroit's Big Three automakers and suppliers are working, Grimes said. Employers also are looking at today's expected rate cut by the U.S. Federal Reserve as an early indication of how the government will respond to the current credit crunch, and whether that reaction will be strong enough.
"There's a lot of uncertainties out there, and when there's uncertainty, businesses would rather remain cautious," Grimes said. "But while some people are talking about a recession, I think we'll see in the first quarter that a lot of people realize those fears won't materialize, and the second quarter will get better."
UPS expects to grow
Amid the gloom in the January-March job outlook for Metro Detroit, some businesses continue to show slight growth in hiring, Manpower's Apsley said. Among them are employers in the transportation, logistics and shipping and education sectors.
One of those is UPS, the Sandy Springs, Ga.-based shipping and logistics firm that employs thousands of delivery drivers, package sorters, pilots and customer service representatives in Michigan. Company spokesman Dan McMackin said UPS has continued to have a growing presence in Michigan, despite the state's downturn.
"We're always hiring," McMackin said. "Many of the service enhancements we've rolled out in recent years that get packages where they're going faster has meant we've had to hire more employees."
He said he expects that trend to continue next year.
Job-seekers will continue to face intense competition, even for positions that used to have more lax education or experience requirements, Apsley of Manpower said. She encouraged those seeking new jobs in the New Year to start looking now -- and to start assembling a perfect resume and an arsenal of solid references.
"With so many people out there looking, you've got to be nothing less than perfect," Apsley said. "These days, no business can afford anything less out of an employee."
Nathan Hurst / The Detroit News
December 11, 2007
Metro Detroit employers will be paring back job offers during the first quarter of 2008, a sign that Michigan's growing pool of jobless workers won't find it easy getting work anytime soon.
While 13 percent of employers told the quarterly Manpower Employment Outlook Survey they expect to increase their work forces in the first three months of next year, 56 percent said their payrolls would remain steady and 18 percent said their hiring will slow down.
"It all has to do with the economy," said Annette Apsley, a staffing specialist at Manpower Inc., the Milwaukee-based employment agency that conducts the quarterly survey. "Many companies are nervous about what's yet to come."
The Manpower survey, which was to be released today, shows employers in southeastern Michigan remain nervous about the region's near-term economic future, which is plagued by a sagging housing sector, a credit-market crunch and an exodus of manufacturing jobs. At 7.7 percent in October, the state's unemployment rate is the worst in the nation.
In the survey, only Oakland County showed signs of increased hiring in the next quarter. Some 10 percent of employers there predicted they'll add workers in the first three months of 2008. Employers in Wayne, Macomb and Livingston counties said they expect respective decreases of 14 percent, 7 percent and 33 percent in hiring, according to the survey.
The dour outlook follows brighter predictions made in September for hiring during the fourth quarter of 2007. Then, more Metro Detroit businesses surveyed said they'd be adding workers in October, November and December.
'Firms want to be careful'
Employers have quite a bit to worry about, said Don Grimes, senior economic researcher at the University of Michigan.
"Right now, everybody's being really cautious, especially with so much talk of a recession," Grimes said Monday. "Firms want to be careful. They want to wait and see exactly how things'll shake out."
Grimes said many experts see the next quarter as a turning point for the nation's economy. Until employers see which way it's headed, many are likely to hold off on any expansion of their work forces.
In many cases, companies are looking to see if earlier job cuts at the Detroit's Big Three automakers and suppliers are working, Grimes said. Employers also are looking at today's expected rate cut by the U.S. Federal Reserve as an early indication of how the government will respond to the current credit crunch, and whether that reaction will be strong enough.
"There's a lot of uncertainties out there, and when there's uncertainty, businesses would rather remain cautious," Grimes said. "But while some people are talking about a recession, I think we'll see in the first quarter that a lot of people realize those fears won't materialize, and the second quarter will get better."
UPS expects to grow
Amid the gloom in the January-March job outlook for Metro Detroit, some businesses continue to show slight growth in hiring, Manpower's Apsley said. Among them are employers in the transportation, logistics and shipping and education sectors.
One of those is UPS, the Sandy Springs, Ga.-based shipping and logistics firm that employs thousands of delivery drivers, package sorters, pilots and customer service representatives in Michigan. Company spokesman Dan McMackin said UPS has continued to have a growing presence in Michigan, despite the state's downturn.
"We're always hiring," McMackin said. "Many of the service enhancements we've rolled out in recent years that get packages where they're going faster has meant we've had to hire more employees."
He said he expects that trend to continue next year.
Job-seekers will continue to face intense competition, even for positions that used to have more lax education or experience requirements, Apsley of Manpower said. She encouraged those seeking new jobs in the New Year to start looking now -- and to start assembling a perfect resume and an arsenal of solid references.
"With so many people out there looking, you've got to be nothing less than perfect," Apsley said. "These days, no business can afford anything less out of an employee."
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