New jobs survey shows downturn

Companies in Wales are forecasting a decline in job prospects for the first quarter of 2002.

The quarterly employment survey by Manpower revealed that Wales enjoyed its second best summer quarter in 2001 since 1977.

But Manpower's managing director Iain Herbertson said the subsequent outlook for the start of 2002 was "extremely disappointing".

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"The region falling from such a strong, positive figure to below national average is indicative of the downturn in overall UK employment prospects," said Mr Herbertson.

A survey of 2,000 firms in the UK found that the net job gains forecast for the next quarterly period is 0.

Sixteen per cent of companies reported they intended to take staff on in the first quarter of 2002 and 16% forecasting they would lay off workers.

But the forecast for Wales is even worse at -2.

The quarterly figures in the wake of the 11 September US terrorist strikes were buoyant.

The first quarter of the year is always the slowest for employment prospects

Iain Herbertson, managing director, Manpower

Thirty per cent of companies reported they expected to recruit staff, while 10% forecasted a fall.

The same respective figures for the first quarter of 2001 were 25% and 13%.

For the first quarter 2002, the national average net job gains is 0 - down from a net job gains of 20 in the last quarter and 12 this time last year.

Healthcare growth

Mr Herbertson added: "The first quarter of the year is always the slowest for employment prospects, fuelled by the traditional slow-down in consumer spending, and not all types of work are in decline."

The strongest forecast areas of jobs growth in 2002 are likely to be public and private healthcare, finance and private building companies.

The worst predictions are for retailing, engineering, electronics and pharmaceuticals.

Leisure companies also forecast a drop off in job creation in early 2002.

Manpower is a leading recruiter of specialist, flexible and contract workforces, employing around 100,000 people each year.