Survey reveals Canadian employers expect more hiring activity in 2011; manufacturers less optimistic

Canadian employers expect a hopeful hiring climate for the first quarter of 2011, according to the latest results of the Manpower Employment Outlook Survey.

With seasonal variations taken into account, the outlook of 14 percent is on par with the outlook reported in the previous quarter. This outlook also shows a three percentage point improvement from the same time last year, when employers reported a seasonally adjusted Net Employment Outlook of 11 percent.

The survey of more than 1,900 Canadian employers reveals that 16 percent plan to increase their payrolls in the first quarter of 2011, while 11 percent anticipate cutbacks. Of those surveyed, 72 percent of employers expect to maintain their current staffing levels and one percent are unsure of their hiring intentions for the upcoming quarter.

"The upcoming quarter’s Net Employment Outlook indicates that the hiring climate remains favourable, particularly in the wholesale and retail trade sector," says Lori Procher, vice-president and general manager of Manpower Canada. "Employers are telling us that they plan to hire at a similar pace as three months ago. Meanwhile, employers in eight of the 10 industry sectors we track anticipate stronger hiring activity than in early 2010."

Among the 10 surveyed industry sectors, employers in wholesale and retail, trade and transportation, and public utilities report the strongest results for the first quarter of 2011, with projected Net Employment Outlooks of 17 and 16 percent, respectively, once seasonal variations are removed from the survey data. This is followed by finance, insurance and real estate industry, where employers report a Net Employment Outlook of 14 percent.

Employers in the manufacturing industry weren’t as optimistic. In the durable goods sector, employers reported a Net Employment Outlook of 13 percent, an eight percentage point drop from the Outlook projected during the previous quarter. However, it is a moderate improvement from the same time last year when industry employers reported an Outlook of five percent.

Employers in the manufacturing-non-durables sector reported a Net Employment Outlook of 10 percent, a slight decrease from the previous quarter when industry employers reported an Outlook of 14 percent. It is also a five percentage point improvement from the same time last year.

"Regionally, employers in Western and Atlantic Canada anticipate the most favourable hiring climates," adds Procher. "The seasonally adjusted data indicates employers in Western Canada have positive hiring intentions for the coming quarter, reporting a Net Employment Outlook of 16 percent. The upbeat forecast for this region is due in part to the strong hiring forecast reported by employers in the mining industry sector, which includes energy production. In Atlantic Canada, employers anticipate a respectable hiring environment for the upcoming quarter, reporting a Net Employment Outlook of 13 percent."

Meanwhile, employers in Ontario expect a hopeful hiring climate with an outlook of 12 percent, and Quebec area employers anticipate a fair first quarter reporting a Net Employment Outlook of seven percent.

Full survey results for each of the 39 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found in the Research Centre at www.manpower.ca.