Nearly one-third of businesses nationally expect to increase employment levels during the second quarter of 1989 and it may result in some labor market shortages, according to a survey by Manpower Inc.
Manpower, the world's largest temporary help service, surveyed nearly 14,000 businesses. The survey showed 30 percent plan to increase employment, 61 percent will stay at current levels and 6 percent foresee staff cutbacks.The Milwaukee-based firm, which issues quarterly reports on job prospects, said in the second quarter of last year 29 percent planned additions, 6 percent anticipated declines and 62 percent expected no changes.
Mitchell S. Fromstein, president of Manpower, said plans to increase employment appear to be "an extension of a general employment expansion that began in 1984 and persisted with marginal increases since that time."
Employers in the coming quarter will be looking for new workers but may have some trouble finding them, he said.
"It appears many firms are having difficulty recruiting the workers they need. Labor market shortages are becoming increasingly widespread," he said.
Part of the upturn in jobs, Fromstein said, is due to seasonal hiring patterns. He said the construction industry and services firms are forecasting the "strongest activity" and durable goods manufacturers are also "optimistic."
"The Midwest region was clearly the leading area, as the prospect of springtime weather accelerated the willingness to add staff," he said. "The Northeast and South are close to the national average and Western states lag somewhat behind."
The seasonal employment of construction makes it "the most optimistic industry in the nation" for jobs, said Fromstein, and 37 percent of such firms plan to add jobs while 8 percent anticipate staff cuts.
He said outlook is also good for manufacturing and most other areas, although employment has been down lately in finance, insurance and real estate, especially in the Northeast.
Fromstein also said government service "should continue to be a rather happy hunting ground for job seekers." He said 26 percent of government agencies surveyed said they would be recruiting new workers and only 4 percent were cutting back.
"By far the strongest outlook is in the Midwest, where expectations are well ahead of any quarter in the past 10 years," he said.