Slow U.S. economy hits Canadian hiring - Globe and Mail

Slow U.S. economy hits Canadian hiring

Survey shows companies more optimistic, but still holding back on adding to payrolls

Tavia Grant

From Tuesday's Globe and MailPublished on Tuesday, Sep. 07, 2010 6:00AM EDTLast updated on Tuesday, Sep. 07, 2010 11:27AM EDT

Optimism about hiring is improving, though most Canadian employers don’t anticipate much change in staffing levels in the coming months as the outlook for the U.S. economy remains shaky.

Seventy per cent of companies don’t see a change in head count in October through to December. About one-fifth, or 21 per cent, expect to hire people, while 7 per cent see job cuts in the fourth quarter, according to employment services company Manpower Canada’s quarterly survey to be released Tuesday.

Canada’s jobs market has been healing over the past year after the recession wiped out almost half-a-million jobs. While most of the losses have been recouped, most economists expect further hiring will be muted, as employers wait for more evidence of a sustained recovery before adding to payrolls.

“We’re slowly moving out of this thing. But the U.S. is keeping people cautious,” said Byrne Luft, vice-president of staffing operations for Manpower Canada.

Hiring sprees are unlikely. However, the overall outlook is still the highest in two years. Manufacturers of durable goods, such as furniture and car parts makers, are the most upbeat in a decade, an outlook Mr. Luft says stems from a rebuilding of inventories and an expected pick-up in activity to meet year-end demand. Hiring in the mining and energy sectors is also increasing, particularly in Western Canada.

The survey comes before a jobs report Friday is expected to show about 25,000 new positions were created with the jobless rate staying at 8 per cent.

Manpower polled almost 1,900 Canadian employers in July and conducts the survey in 36 countries. Here are some of the findings:

MOST OPTIMISTIC CANADIAN CITIES

Moncton

Richmond, B.C.

St. John’s, Nfld.

Saskatoon

Red Deer, Alta.

MOST PESSIMISTIC CITIES

Brantford, Ont.

Niagara Falls, Ont.

Granby, Que.

Montreal

Windsor, Ont.

MOST OPTIMISTIC COUNTRIES

China

Taiwan

India

Brazil

Peru

MOST PESSIMISTIC COUNTRIES

Greece

Italy

Czech Republic

Spain

Ireland