Few Honolulu companies plan to add workers, survey finds

Advertiser Staff and News Services

Little change is expected in hiring in Honolulu this spring, despite projections for slightly increased hiring nationwide, a new forecast finds.

Ninety percent of companies interviewed said they had no plans to add or reduce jobs in April through June, according to Manpower Inc.'s quarterly survey of employers released last week.

Just 3 percent said they planned to recruit or add more workers, while 7 percent said they expected to cut back, according to the survey.

For the similar period last year, 87 percent said they had no plans to add or reduce jobs, while 13 percent forecast adding staff; none forecast cutbacks, according to the survey.

For Hawai'i, the survey said some job growth is planned in construction, but staff reductions are forecast to lie ahead in wholesale and retail trade and services.

Nationwide, 21 percent of the firms interviewed said they planned to add jobs in April through June, while another 10 percent said they anticipated cutting staff during that time, according to the survey of 16,000 American businesses.

The rest of the companies said they either expected to maintain their staffing levels or were uncertain about hiring activities in the second quarter.

When seasonally adjusted, the findings reflect a 1 percent increase in hiring activity during the first three months of the year. The survey found a flat hiring trend in the first quarter.

Still, the survey's second-quarter findings are down from the same time last year, when 28 percent of the firms said they planned to hire more people and 8 percent intended to cut staff.

"Companies are going to be hesitating for some time yet, but the trend could turn into something more positive in the next two or three quarters," said Jeffrey Joerres, chairman and chief executive of Glendale, Calif.-based Manpower, the nation's largest staffing company.

The increase, though slight, was the survey's first in more than a year. Manpower expects the increase to continue in the next few quarters, which could signal a recovery, Joerres said.

"We've got a ways to climb back up before the individual feels like it's a good market," he said. "Companies are sensing they need more people, but it's not of a magnitude that many individuals are going to feel like they have an environment where they can find the positions and the companies they want to work for."

Manufacturing companies expect to show the greatest improvements in hiring activity among the 10 industry sectors surveyed, Manpower said.

Twenty percent of durable goods manufacturers said they expected to add more jobs in the second quarter, while 14 percent planned cutbacks, the survey found. Durable goods are costly manufactured items, such as farm equipment and industrial machinery, expected to last at least three years.

Manufacturers of nondurable goods also expect stronger hiring activity, with 19 percent planning more jobs and 9 percent anticipating reductions.

"We think there's going to be a slow pickup in industrial activity in the first half and quicker growth in the second," said Dave Huether, chief economist of the National Association of Manufacturers.

The Labor Department reported last week the number of people who filed claims for unemployment benefits for the first time rose by 10,000 to 383,000 the previous week.

Analysts said the increase was larger than expected but did not change their view that the labor market is starting to show signs of stabilizing after the sharp surge in layoffs last year following the September terrorist attacks.