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MANPOWER CHINA MEDIA RELEASE
Contact : Apple Xu
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Fax : +86 21 58782661
apple.xu@manpower.com.cn  

More than 30 percent of mainland China employers plan to add to their workforces in Quarter 3
Manpower: Employer confidence fuels most active hiring pace in six-year history of survey

– Influenced by the Shanghai World EXPO, Services sector employers report the strongest recruitment intentions;
– Employers surveyed in all 14 Chinese mainland cities continue to predict headcount growth in the upcoming quarter with employers in Suzhou reporting the strongest third-quarter hiring intentions；
– Positive forecasts throughout the Asia Pacific and Americas regions; mixed hiring expectations across the Europe, Middle East & Africa (EMEA) region.

8 June 2010 [Shanghai, China]
The latest Manpower Employment Outlook Survey report released by Manpower, the world leader in workforce solutions, indicates that employers in mainland Chinese companies intend to accelerate their recruitment activities in the next three months. The resulting Net Employment Outlook of +27% is the strongest forecast in the six-year history of the Manpower China survey.

Manpower interviewed over 61,000 employers in companies around the globe, including those in 3,607 companies in mainland China, to measure employers’ intentions to increase or decrease the number of employees in their organizations between July and September. In mainland China, 31 percent of employers surveyed expect to increase their workforces in Quarter 3 2010 – an increase of 20 percentage points compared to the same period last year. The percentage of employers who expect to reduce headcount in the upcoming quarter stands at four percent.

The difference between the number of employers expecting to increase staff and those expecting to reduce staff results in a Net Employment Outlook1 of +27%, which is a 10-percentage point improvement compared to the previous quarter. Once data is adjusted to remove seasonal variations2, the Net Employment Outlook for mainland China stands at +27% (same as before adjustment), resulting in a nine percentage point increase quarter-over-quarter, and a considerable improvement of 24 percentage points year-over-year.

“China’s remarkable improvement in the first quarter may have been a result of companies boosting job orders, thus, increasing demand in export-oriented and labor-intensive companies. At the same time, there have been some, if not many, foreign companies that have leveraged this opportunity to accelerate their relocation or expansion work to second, or third-tier cities. These activities trigger demand for labor,” said Danny Yuan, Managing Director for Manpower China. “During the recent downturn, we could see that job losses were mainly caused by a decrease in job orders. Now, the situation seems to be recovering quickly, and many companies are in urgent need of laborers to meet the increased demand. In regions like the Yangtze River Delta and Pearl River Delta, employers’ demand for laborers has resulted in a blue-collar labor shortage,” added Yuan.

The 2010 Shanghai World EXPO effect: Services sector continues to demand for more labor

Employers in the Services, the Wholesale & Retail Trade and the Finance, Insurance & Real Estate, industry sectors forecast record-breaking Net Employment Outlook of, or over, +30%. 

“The EXPO is really benefitting the Services sector. This international celebration is igniting hiring in the Services sector, especially for companies that provide hospitality, tourism & travel, exhibition & conference, logistics & transportation, translation, and human resources services. This major event explains why employers in the Services sector report a Net Employment Outlook of +32%, the strongest among all six industries, however hiring expectations in the Services sector is positive throughout most of the Asia Pacific region,” Danny Yuan said.

Employers in the Wholesale & Retail Trade sector report a Net Employment Outlook of +31%, an increase of 16 and 28 percentage points quarter-over-quarter and year-over-year, respectively. Employers in the Finance, Insurance & Real Estate, Transportation & Utilities, Mining & Construction, and Manufacturing sectors also plan to add to their workforces in the upcoming quarter, and employers in every sector report Outlook improvements both quarter-over-quarter and year-over-year. 

Headcount growth predicted in all 14 cities. Suzhou employers report the strongest hiring intentions

Corresponding with the Net Employment Outlook by industry sectors, employers across all 14 Chinese cities anticipate positive recruitment activities in Quarter 3 2010. With the exception of Chongqing, employers in 13 of 14 Chinese mainland cities report the strongest hiring intentions since they first participated in the survey. The 13 cities show varying levels of improvement compared to the previous quarter and year. Among these cities, employers in Xi’an report the sharpest improvement, with an increase of 28 percentage points quarter-over-quarter and 35 percentage points year-over-year. Chongqing’s Net Employment Outlook stands at +18%, a dip of six percentage points quarter-over-quarter, but a strong rebound of 15 percentage points from the same period last year.

Meanwhile, Suzhou employers continue to report the strongest hiring intentions for the second consecutive quarter, and the Net Employment Outlook stands at a booming +43%. The Outlook improves 11 percentage points compared to the previous quarter, and 42 percentage points year-over-year.

Danny Yuan commented, “The healthy and conducive factors like the financial recovery, industrial development and increase in exports are contributing to the strong labor demand of this export-oriented and small-medium enterprise-concentrated city.” 

Employers in the Asia Pacific and Americas regions forecast positive hiring activities; meanwhile, hiring expectations are mixed across the Europe, Middle East & Africa region

The strongest hiring Outlooks in the Asia Pacific region are reported by employers in India, Taiwan, China, and Australia. Employers in both China and Taiwan are reporting the most optimistic forecasts since the surveys began there. Year-over-year Outlook improvements can be seen in all eight countries and territories in the Asia Pacific region. Whereas six countries and territories show varied improvements when quarter-over-quarter comparisons are made.

Globally, employers in 31 of the 36 countries and territories Manpower surveys expect to add to their workforces in Quarter 3 2010. In quarter-over-quarter comparisons, Outlooks improve in 23 of 36 countries and territories. Where year-over-year comparisons can be made, hiring expectations are stronger in 30 of the 34 countries and territories. Across the Europe, Middle East & Africa (EMEA) region hiring expectations are mixed: employers in 13 of 18 countries forecast positive Outlooks in the quarter ahead, comparing favorably to Quarter 3 2009 when employers from only five of 18 EMEA countries reported positive Outlooks. Meanwhile, forecasts throughout the Asia Pacific and Americas regions are positive.

Forecasts are strongest in India, Brazil, Taiwan, China, Peru, and Australia. However, hiring intentions are weakest in Italy, Ireland, Spain, and Greece.

The Manpower Employment Outlook Survey is available free of charge to the public through www.manpower.com.cn/meos. The next Manpower Employment Outlook Survey will be released on 7 September 2010 to report hiring expectations for the fourth quarter of 2010.

Note To Editor

1. The Net Employment Outlook is derived by taking the percentage of employers anticipating an increase in hiring activity less the percentage of employers who expect to reduce their workforces.
2. Seasonally adjusted data is a statistical process that allows us to present the survey data without the effect of fluctuations that normally occur through the course of the year, as a result of seasonal events such as changes in weather, public holidays etc. Removal of the seasonal effect gives us the ability to observe the current labor market trends more meaningfully. All industry sector data reported above is seasonally adjusted. Regional and city data has not been adjusted to account for seasonal variation.

Full survey results for each of the 36 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found in the Manpower Press Room at www.manpower.com/meos. In addition, all tables and graphs from the full report are available to be downloaded for use in publication or broadcast from the Manpower Web site at www.manpower.com/library.

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 most extensive forward-looking survey of its kind, unparalleled in its size, scope, longevity and area of focus. The Survey has been running for nearly 50 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 over 61,000 public and private employers worldwide and is considered a highly respected economic indicator.

The Manpower Employment Outlook Survey is currently available for 36 countries and territories: Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Costa Rica, Czech Republic, France, Germany, Greece, Guatemala, Hong Kong, Hungary, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Panama, Peru, Poland, Romania, 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. Colombia, the Czech Republic, Greece, Guatemala, Poland and Romania joined in 2008 and Hungary and Brazil were added in 2009. Panama was added in 2010. For more information, visit the Manpower Inc. Web site at www.manpower.com and enter the Research Center.

About Manpower Mainland China

Manpower Inc. (NYSE: MAN) is a world leader in workforce solutions. The 62-year-old company has 4,000 offices in 82 countries and territories. Manpower Inc. first entered mainland China market in 1994. Today, Manpower has nearly 400 recruiters operating nationally in 19 cities across mainland China.

We offer a wide array of employment services, specializing in various practices including Accounting & Finance, Engineering & Manufacturing, Human Resources, Information Technology, Office, Sales & Marketing, and Supply Chain. Through Manpower brand, we provide permanent recruitment, temporary staffing and managed services. To meet clients’ needs for middle to senior level candidates, we provide customized employment services under Manpower Professional brand. We have more than 3,500 clients in Mainland China, comprising of local and multinational companies.

Through our subsidiary, Right Management, we provide organizational consulting services and leadership development training services. In 1996, Right Management established offices in mainland China. In addition, through Manpower Caden, Manpower China is cooperating with the Chinese government since 2005 to support the country’s rapidly evolving labor market by providing consulting services to governments and related organizations about labor market development, vocational training and employment services.

For more information about Manpower and its operations in mainland China, please visit:　www.manpower.com.cn.

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