FINANCIAL SERVICES AND LONDON EMPLOYERS DRIVE UK HIRING PLANS
- Employer Q4 hiring plans in financial services hit nine-year high -
- London employers reveal most confidence in five years -
MANPOWER EMPLOYMENT OUTLOOK SURVEY Q4 2006
LONDON, 12 SEPTEMBER 2006: A marked improvement in hiring plans by employers
in the Finance & Business Services sector and the London region will lead the UK’s end of year
hiring plans according to a survey by Manpower, the leading employment services company. Finance
& Business Services firms expect their most bullish fourth-quarter hiring activity since 1997,
whilst London employers expect hiring intentions to reach a five-year high.
The details – revealed in the latest Manpower Employment Outlook Survey – show that nearly one
third (31%) of Finance & Business Services employers plan to take on more staff in the last three
months of 2006 and just 8% plan to make cut-backs, giving a Net Employment Outlook figure of +23%1 -
a significant improvement of 14 percentage points over last quarter and 12 percentage points over
last year at this time. The figures for the Finance specific sub-sector are even stronger,
with an Outlook of +29%.
London is benefiting from the uplift in hiring confidence from the Finance & Business Services
sector, with nearly 4 out of 10 (39%) employers expecting to expand their workforces, and 9% to
trim staff numbers – an uplift of 17 percentage points from last quarter and a considerable 30
percentage point improvement over last year. The London job market is notably fluid with just
52% of employers not looking to change their staffing numbers over the next three months compared
to a UK average of 74%.
Commenting on the results, Manpower UK's Managing Director Mark Cahill said: "The Outlook reported
by employers in the Finance and Business Services sector and London region are encouraging – especially
as these two groups reported relatively conservative Outlooks during the summer."
"The improved Outlook in the Finance and Business Services sector has a lot to do with confidence in
the City, after a dip in the equities market and the spike in oil prices. Alongside increased mergers
and acquisitions activity, we’re also seeing an upturn in bonuses. However, there are signs too of
wage inflation as firms fight to attract and hold on to quality staff."
Manpower’s quarterly survey of over 2,100 UK employers measures anticipated hiring activity for
the forthcoming quarter. The results for the period October-December 2006 reveal an overall Net
Employment Outlook of +11%¹, representing a quarter-on-quarter decrease of two percentage points
(from +13%), but a year-on-year increase of three percentage points (from +8%). When seasonal
variations are removed from the data, the Outlook is +9%² - one of the most optimistic of the
12 European nations polled.
Less optimistic are employers in the Hotels and Retail sector where hiring plans have dropped by
nine percentage points quarter-on-quarter to an Outlook of +5%; and two percentage points weaker
year-on-year – driven by particularly weak figures from the High Street and Leisure sub-sectors
(each +2%).
Comments Cahill: "Higher energy charges requiring better cost management and an
anticipated further increase in interest rates are keeping High Street hiring plans tight. Many firms
also increased headcount in anticipation of higher sales pre-World Cup and already have the capacity
required for the end of the year. Any hiring made for the festive season will likely be flexible and
temporary.
On a regional level, the UK is split roughly into a North/South divide. Employers in the North report
significantly more confidence than those in the South, with the exception of London. Employers in
Scotland, the North East, the North West, Yorkshire & Humberside and Northern Ireland all report
hiring intentions stronger than the national average, whilst those in Wales, East Anglia, the
South East, the South West, and East and West Midlands all report weaker hiring intentions.
Across Europe employment expectations share the UK’s positive Outlook, with the strongest hiring
intentions predicted in Ireland, Norway, Austria and Sweden, while the weakest fourth-quarter hiring
activity is forecast for Italy and France. Notably, employers in Austria, Italy and Germany reported
their most optimistic hiring intentions since the surveys began in these countries.
-Ends-
NOTES TO EDITORS
¹A 'Net Employment Outlook' is calculated by subtracting those employers who plan to reduce
staffing levels from those who plan to hire staff. A positive result indicates that more
employers plan to increase rather than decrease staffing levels; a negative result reflects
the opposite. [% increase (19%) - % decrease (4%) = 15%]
²In terms of Net Employment Outlook without seasonal adjustment
For international comparisons and visual library with graphs, visit
www.manpower.com.
About the Survey
The Manpower Employment Outlook Survey is conducted quarterly to measure employers' intentions
to increase or decrease the number of employees in their workforce during the next quarter.
It is the only forward-looking survey of its kind, unparalleled in its size, scope, longevity
and area of focus. The survey has been running for more than 40 years and is one of the most
trusted surveys of employment activity in the world. The Manpower Employment Outlook Survey is
based on interviews with nearly 50,000 public and private employers worldwide and is considered
a highly respected economic indicator.
The Manpower Employment Outlook Survey is currently available for 27 countries and territories:
Argentina, Australia, Austria, Belgium, Canada, China, Costa Rica, France, Germany, Hong Kong, India,
Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Peru, Singapore, Spain, South Africa,
Sweden, Switzerland, Taiwan, the United Kingdom and the United States. The program began in the United
States and Canada in 1962, and the United Kingdom was added in 1966. Mexico and Ireland launched the
survey in 2002, and 13 additional countries were added to the program in 2003. New Zealand joined
the program in 2004, China, India, Switzerland and Taiwan were added in 2005, and Argentina, Peru,
Costa Rica and South Africa joined in 2006. For more information, visit the Manpower Inc. Web site at
www.manpower.com and
enter the Research Centre
About Manpower
Manpower is one of the largest and most innovative companies in the UK’s employment services industry;
creating and delivering services that enable its clients to win in the changing world of work. The
company provides a wide range of services including permanent, temporary and contract recruitment,
employee assessment and selection, training, outplacement, outsourcing and consulting.
Manpower was established in the UK in 1956, and today works with organisations in both the public and
private sectors, ranging from small and medium-sized enterprises, to multi-national organisations such
as BMW, BT, Hertfordshire County Council, IBM, Royal Mail and Xerox.
The focus of Manpower’s work is on raising productivity through improved quality, efficiency and
cost-reduction, enabling customers to concentrate on their core business. Manpower works across
all industries finding people for every level of an organisation.
Manpower Professional (formerly Nicholas Andrews) is the company’s accountancy and finance arm,
and was voted Recruiter of the Year by Accountancy Age magazine in 2005.
Manpower UK has a network of over 300 offices and is a subsidiary of Manpower Inc, a worldwide
network of 4,400 offices in 72 countries and territories.
