Employers in the UK are expressing their strongest New Year hiring intentions

Most optimistic New Year jobs Outlook on record
- Q1 jobs confidence equals Q1 2003 high
- Record Finance and Business Services jobs confidence

Employers in the UK are expressing their strongest New Year hiring intentions since records began, with a Net Employment Outlook of 14%, according to the latest Manpower Employment Outlook Survey. When seasonal variations are removed from the data, the outlook improves to 18%. For the second consecutive quarter, the Finance and Business Services sector continues to drive optimism across the UK, with employers reporting a Net Employment Outlook of 24% - the most optimistic outlook for this sector since 1998.

Mark Cahill, managing director at Manpower, says: The fact that UK employers are reporting their highest New Year levels of confidence since 1998 is great news. These figures are extremely positive, particularly as the first three months of the year are traditionally a quieter time for recruitment, as companies scale back after Christmas. With low levels of unemployment, it is very much a jobseekersí market and the opportunity is there for candidates to develop their experience and skills.

In this climate, employers need to continue to review recruitment procedures and benefits packages in order to attract the best candidates.

The Manpower Employment Outlook Survey measures employer hiring intentions for the quarter ahead: January to March 2005. 2,100 UK employers were surveyed in the UK and over 35,000 employers in 19 countries and territories globally. The Net Employment Outlook for the UK in Q1 is 14%. When seasonal variations are taken into account, the outlook improves to 18%.

Continues Cahill: The Finance and Business Services sector continues to perform well. Some jobs in this sector are moving out of the capital to the regions and the data reflects this. Results for London are reserved yet still positive - with a balance of 5% of employers looking to take on staff in Q1. Employers in the Transport and Communications sector are also optimistic. The increased interest in 3G services could account for the Outlook of 22% - well above the national average.

Across the UK, eight of the nine industry sectors surveyed by Manpower are planning to take on staff next quarter. Employers in Finance and Business Services (up 13 percentage points year on year); Transport and Communications (up nine percentage points year on year); Community and Social (up four percentage points year on year), all reported figures above the national average. The Agriculture sector is the only sector to expect cutbacks with a Net Employment Outlook of -12% - a decline of four percentage points over the last quarter and a year-on-year decrease of nine percentage points.

Employers in eleven of the twelve regions surveyed intend to take on more staff in the quarter ahead. Employers in the North East are the most optimistic with 28% of employers looking to expand their workforce - an increase of 11 percentage points over the year. Conversely, employers in London, the North West, West Midlands and the Eastern regions are the least optimistic: all four regions are reporting Net Employment Outlooks below the national average.

Of the 11 European countries surveyed, employers in all but Germany (-6%) and Italy (-1%) recorded positive hiring intentions. The strongest hiring intentions in Europe are reported in Ireland ( 15%) UK and Norway ( 12%), while hiring is expected to be less robust inSweden ( 5%), and Belgium ( 5%).

Looking at the results from a global level, 17 of the 19 countries and territories surveyed by Manpower anticipate positive Net Employment Outlooks for the three months ahead. Employers in New Zealand ( 30%) and Hong Kong
( 26%) report the most buoyant forecasts. Employers in 12 of the 19 countries expect more hiring compared to this time last year.