Chinese firms anticipate steady hiring activity across all industry sectors in the first quarter of next year, according to Manpower's latest employment outlook survey.

Employers in the transportation and utilities industries (taken as one sector) show the most optimism in their hiring intentions, said the survey, which came out yesterday.

"As China becomes the world's manufacturing center, manufacturing power is demanding increased transportation and logistics capabilities," said Lucille Wu, country manager for Manpower China.

Manpower is one of the world's leading human resources services providers.

Foreign logistics companies, in particular, are a very important driving force for optimistic hiring intentions, Wu said.

"This sector has benefited from overseas investment and remains the most positive industry sector for employment prospects in China for the second consecutive quarter," Wu added.

With the further opening of the logistics industry in China, foreign logistics companies are expanding their networks to grab a larger market share.

"They need more people to work for them," Wu said.

The Manpower quarterly survey interviewed 3,191 employers in China.

All survey participants were asked only one question "How do you anticipate total employment at your location to change in the three months to the end of March 2006 as compared to the current quarter?"

The wholesale and retail trade sector reported the greatest quarter-over-quarter improvement in hiring expectations, the survey said.

"The peak shopping season around the Chinese New Year is a major reason for that," Wu said.

Next year's Chinese Lunar New Year will fall on January 29.

Another factor, Wu said, is the increased number of foreign retailers in China. The country fully opened its retail industry at the end of last year.

"Foreign retailers are expected to speed up their hiring activities in China," Wu said.

Employers are least optimistic in the finance, insurance and real estate industry sectors, the survey found.

"These sectors have been influenced the most by the government's macroeconomic controls," Wu said.

The Chinese Government has implemented a series of measures since the end of 2003 to cool down over-investment in sectors such as the real estate industry. Measures range from tighter control of land supply to stricter lending policies.

The Manpower quarterly employment outlook survey has been running for more than 40 years. It is currently available in 23 countries and territories. China was added last year.

Employment prospects remain strong in the Asia-Pacific region in the first quarter of 2006, Wu said.

Indian employers reported the most optimistic hiring expectations in the region. Employers in Singapore are least optimistic, with a considerable slowdown expected in the first quarter.

Employers in Germany, Italy and Austria are forecasting negative hiring expectations for the quarter ahead, the survey found.

(China Daily December 15, 2005)