FOR IMMEDIATE RELEASE                                                             10 March 2008

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Decline in hiring trend in South Africa expected for the second quarter of 2008

[Johannesburg, 10 March 2008) – According to the quarterly Manpower Employment Outlook Survey released today, conducted by the recruitment and staffing giant, employers across the major economic regions of South Africa have indicated a decline in hiring expectations for the second quarter of 2008. The net employment outlook has dropped to 23%, from 27% in the first quarter of 2008.

The Manpower Employment Outlook Survey was conducted by interviewing a representative sample of 764 small, medium and large employers in South Africa.  All survey participants were asked, “How do you anticipate total employment at your location to change in the three months to the end of June 2008 as compared to the current quarter?”

The “Net Employment Outlook” figure is derived by taking the percentage of employers anticipating total employment to increase, and subtracting from this, the percentage expecting to see a decrease in employment at their location in the next quarter.

According to the survey, the sectors hardest hit by the slowdown in hiring expectations are the Construction sector (with a 9 percentage point decrease), the Manufacturing sector (13 percentage point decrease), the Mining sector (10 percentage point decrease), Restaurants & Hotel sector (8 percentage point decrease), and the Transport & Storage sector (10 percentage point decrease).  Jan Coetzee, Managing Director of Manpower South Africa, indicated that the actual decline in the overall Net Employment Outlook is expected to be higher than reported, as the survey was conducted prior to the exposure of the electricity crises in late January. He made specific reference to the Mining sector, where the negative impact of power cuts and load shedding has been widely reported.

According to Coetzee, Manpower South Africa has experienced a marked increase over the past two months in requests from professional and skilled South Africans for jobs outside the country. In addition, recruitment companies, specifically from Australia and New Zealand, are actively sourcing skilled and professional mining and engineering staff from South Africa. He notes that it will be unfortunate to loose these professionals as it would precipitate the already existing challenge of significant skills shortages in the South African market.

It is however not all doom and gloom. Employers in the Agriculture, Hunting, Forestry & Fishing sector reported a 7 percentage point increase in Net Employment Outlook compared to the first quarter, and in the Public and Social sector, employers reported a 2 percentage point increase. The Electricity, Gas & Water sector; Finance, Insurance, Real Estate & Business Services sector; and Wholesale and Retail Trade sector have all reported a relatively optimist Net Employment Outlook, although stable from the first quarter.   

Coetzee noted that South Africa is finding itself in the midst of a human resources paradox. Despite economic growth over the past 5 years, the economy has failed to generate sufficient jobs to reduce aggregate average levels of unemployment – or underemployment.  “We are facing a serious shortage in the labor market arising from a lack of individuals with the necessary skills required for available jobs. This talent crunch threatens to stall the country’s long term economic growth. This dual reality of unemployment and talent scarcity is creating a unique, self-reinforcing cycle and presents the government and South African employers with a human-resources paradox: how to find the right people at the right time in the right place – and fill the dearth in the midst of plenty.”                   ENDS//

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Zukiswa Nomnganga                                                                                                                                                                                                                                                                                                                    

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About the Survey

The Manpower Employment Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter.  It is the most extensive forward-looking survey of its kind, unparalleled in its size, scope, longevity and area of focus.  The Survey has been running for more than 45 years and is one of the most trusted surveys of employment activity in the world.  The Manpower Employment Outlook Survey is based on interviews with more than 55,000 public and private employers worldwide and is considered a highly respected economic indicator. 

The Manpower Employment Outlook Survey is currently available for 32 countries and territories:  Argentina, Australia, Austria, Belgium, Canada, China, Costa Rica, Czech Republic, France, Germany, Greece, Guatemala, Hong Kong, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Peru, Poland, Romania, Singapore, Spain, South Africa, Sweden, Switzerland, Taiwan, the United Kingdom and the United States.  The program began in the United States and Canada in 1962, and the United Kingdom was added in 1966.  Mexico and Ireland launched the survey in 2002, and 13 additional countries were added to the program in 2003.  New Zealand joined the program in 2004, China, India, Switzerland and Taiwan were added in 2005, and Argentina, Peru, Costa Rica and South Africa joined in 2006.  The Czech Republic, Greece, Guatemala, Poland and Romania joined in 2008.  For more information, visit the Manpower Inc. Web site at www.manpower.com and enter the Research Center.

About Manpower South Africa

Manpower South Africa is the local subsidiary of Manpower Inc. (NYSE: MAN), a world leader in the employment services industry. Celebrating its 60^th anniversary in 2008, the $21 billion Manpower Inc. offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting.  Manpower's worldwide network of 4,500 offices in 80 countries and territories enables the company to meet the needs of its 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world's largest multinational corporations. The focus of Manpower's work is on raising productivity through improved quality, efficiency and cost-reduction across their total workforce, enabling clients to concentrate on their core business activities.

Manpower South Africa was established in 1999, and since inception, has built the reputation as an expert talent acquisition and staffing provider in the Finance, Engineering, IT, Office Support, and Industrial sectors. Manpower South Africa currently operates 15 specialist branches across South Africa.  For more information, visit www.manpower.co.za.