06th November 2006

UK MANUFACTURING SHOWING SIGNS OF REVIVAL

MANPOWER EMPLOYMENT OUTLOOK SURVEY Q4 2006

Britain’s Manufacturing sector looks set to continue its cautious revival throughout the final months of the year, according to a survey by Manpower, the UK’s leading employment experts.

Manpower’s Employment Outlook Survey, a quarterly study of employer hiring intentions, found that the majority of Manufacturing employers (77%) expect to keep their current staff levels until the end of the year. Encouragingly, a further 16% in the Manufacturing sector intend to increase headcount over the same period, while just 6% expect to decrease workforce numbers.

Ruth Harper, head of public affairs at Manpower UK, said: "UK manufacturing exports are up, and much of this is thanks to niche manufacturers selling to the EU. In Wales for example, the smaller, more specialised companies are helping keep the local labour market afloat.

"The UK is still seeing a net loss of jobs in larger manufacturing, but new flexible working schemes are beginning to make British factories more competitive; large manufacturers often benefit from knock-on uplift thanks to the strong performance of their smaller rivals. Manpower branches report that niche manufacturing companies are thriving in East Anglia, the East Midlands and even in Greater London."

While employers in the Manufacturing sector report buoyant hiring intentions, Manpower’s survey found that the strongest industry sector this quarter is Finance and Business Services, where an average 23% of employers expect to hire more staff before January. Strong hiring activity is also expected by employers in the Mining (21%), Utilities (17%) and Transport (16%) sectors.

-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

Commentary and full details on every sector and region can be found in the survey report at www.manpower.com. or by calling the Press Office on 020 8870 2214 / damian@saltlondon.com laura@saltlondon.com

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 26 countries and territories: Australia, Austria, Belgium, Canada, China, Costa Rica, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Peru, Singapore, South Africa, Spain, 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 Peru and Costa Rica 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.

For more information, see www.manpower.co.uk