Unemployment: More Bad News

By aaroncynic in News on Dec 8, 2009 3:00PM

Even though some reports are painting the slight dip in the unemployment rate rosier than others, the Chicago Metro area still could be in for even tougher times. Manpower, one of the largest employment services companies, released their quarterly employment outlook survey yesterday, predicting slow hiring in the first quarter of 2010.

Of the companies interviewed, only 8% in the Chicago market plan to hire more employees. 16% plan to “reduce their payrolls” cut jobs. According to a spokesperson, Anne Edmunds, “Employers are slightly less optimistic about hiring activity as compared to one year ago, when 15% of companies surveyed planned to increase staff levels and 21% are expected to cut payrolls.” Many industries, including manufacturing, wholesale and retail trade, construction and government plan to cut jobs, while prospects in finance and professional and business services appear optamistic.

Manpower itself reported a 10% - 15% growth in business last quarter, which could be a sign of slow economic recovery or potentially a sign of further shifting hiring trends. USA Today calls the growth a good sign, stating that “cautious employers typically hire temps in a recovery before bringing on full-time staffers.” The jump in hiring temps however, could potentially prolong economic woe, as temporary and contract workers can be laid off much easier and don't receive health insurance or unemployment.