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Study: Who gets student loans? 2000
Over half (52%) of the full-time post-secondary students aged 18 to 24 with parental income below $40,000 received a loan from the Canada Student Loans Program (CSLP) in 2000, compared with 14% of students with parental income of $80,000 or more, according to a new study.
The average loan amount declines as parental income increases. In 2000, about two-thirds of the value of CSLP loans went to students with parental income below $60,000, 73% in the case of dependent students and 51% in the case of independent students.
Since the CSLP is intended to help students from lower- and middle-income families meet the costs of post-secondary education, the study addresses the following questions: How well are student loans targeted to low-income youth?, To what extent does the amount of the loan reflect the level of financial need?, What are the consequences of taking parental income into account for students considered dependent on their parents?
Using a database created by linking the Statistics Canada Longitudinal Administrative Database to CSLP administrative records, the study concentrates on persons aged 18 to 24. Quebec, the Northwest Territories, and Nunavut do not participate in the CSLP and were therefore excluded. Yukon was also excluded because of sample size limitations.
The CSLP distinguishes between "dependent" and "independent" students (married people, single parents, those who had been employed in the last 24 months and those who left high school more than four years ago).
In the case of dependent students, parental income is taken into account in assessing financial need. It is therefore not surprising that their CSLP take-up rate declines rapidly at higher parental income, from 61% in 2000 for those with parental income below $20,000 to 6% for $100,000 and over.
Female students had a higher CSLP take-up rate than their male counterparts (34% versus 29%). But they also had a higher full-time post-secondary participation rate (38% versus 30%).
Students of families who came to Canada since 1980 had a much higher CSLP take-up rate than others (45% versus 31%). The difference is partly attributable to lower parental income: 58% of these immigrant students had parental income below $40,000, compared with 29% of other students.
Of all the regions, Ontario stands out as having the most targeted loans and the most evenly distributed enrolment rates. Its average CSLP take-up rate was similar to other regions except the Atlantic, but the gap in rates between low and high parental income was the greatest.
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Study: Adult education and its impact on earnings - 1993 to 2001
On average, workers who participated in adult education and obtained a post-secondary certificate made significant gains in wages and earnings, according to a new study.
The study documented participation patterns in adult education among workers during two periods: 1994 to 1997, and 1997 to 2000, using data from the Survey of Labour and Income Dynamics. It also examined the impact of adult education on hourly wages and annual earnings, taking into account factors such as union status, occupation, firm size, industry and province.
Around 14% of Canadian workers participated in adult education during the study period, while 8% obtained a post-secondary certificate through it.
On average, young men who went back to school and obtained a post-secondary certificate saw their wages increase 8% more than those of their counterparts who did not go back to school. The equivalent increase among young women was 10%.
However, gains differed from group to group. For example, increases among older workers, those aged 35 to 59, were restricted to those who stayed with the same employer.
Older men who stayed with the same employer while obtaining a post-secondary certificate registered gains in hourly wages that were on average 13% higher than those registered by their counterparts who did not go back to school. The gain among their female counterparts was 7%.
Both older men and women who stayed with the same employer recorded superior increases in terms of annual earnings as well.
The wages and earnings of older men and women who obtained a post-secondary certificate and switched employers did not increase faster than those of their non-participating counterparts.
Among young women who switched jobs, those who obtained post-secondary certificates registered hourly wage gains on average 15% higher than those who did not participate in adult education.
Among young men who obtained post-secondary certificates, those who switched jobs enjoyed 8% higher wage gains than their non-participating counterparts. Those who stayed on the same job received 6% higher wage gains than their non-participating counterparts.
It is unclear why older workers who obtained a diploma and switched employer did not enjoy stronger earnings growth than their counterparts who did not go back to school.
One possible explanation is that the additional earnings they might have obtained through their diploma were offset by the loss of firm-specific knowledge and skills they incurred while changing employers.
The study supported previous research and it suggested that workers with high school education or above were twice as likely to participate in adult schooling and to obtain a post-secondary certificate as those with less than a high school education.
It also showed that younger adults were more likely to participate in adult education programs. Those aged 17 to 34 were more likely to participate than their older counterparts aged 35 to 59.
Marital status was another factor, particularly among women. Single women were more likely to participate than married women, and single women were twice as likely as divorced women to obtain a post-secondary certificate.
Note: Adult schooling participants are defined as those who had previously left school and worked for at least a year before they went back to school. In the context of this study, attending school is defined as enrolment in a credit program in a formal educational institution.
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Survey on Financing of Small- and Medium-sized Enterprises 2004
The bigger the enterprise is in terms of employees, the higher its average outstanding debt, according to results from the Survey on Financing of Small- and Medium-sized Enterprises.
Businesses with 1 to 4 employees had average debt of $187,000 in 2004. Those with 5 to 19 employees carried an average of $489,000 in debt, while the average among businesses with 20 to 99 employees was $2.2 million.
In total, small- and medium-sized enterprises had $377 billion in total debt outstanding in 2004, up 4.7% compared with $360 billion four years earlier.
On the other hand, the average for all enterprises declined 5.1% from $293,000 in 2000 to $278,000 in 2004. This is because the number of enterprises rose faster than total debt during the four-year period.
Total debt is comprised of all liabilities on business' balance sheets. It includes loans and mortgages from banks and other financial institutions, credit card balances, lease obligations, credit obtained from crown corporations, short-term trade credit owed to suppliers and loans from private individuals.
The survey, conducted in the fall and winter of 2004, covered about 3,500 responding firms with fewer than 500 employees and less than $50 million in revenue. Survey results cover seven industry groupings, five employment sizes, six geographic regions and start-ups as opposed to established firms.
On a sectoral basis, average debt rose slightly between 2000 and 2004 among businesses in three key sectors: wholesale and retail trade; tourism; and agricultural and primary industries.
However, average outstanding debt among businesses in the manufacturing sector declined by about one-quarter to $390,000. At the same time, their total debt fell 15% to about $29 billion.
This result is consistent with independent findings for larger incorporated enterprises as reported by Statistics Canada's quarterly financial statistics for enterprises. Those data show borrowings rose 6.0% from 2001 to 2004 among non-financial industries. However, they declined 4.3% in the manufacturing sector.
Small- and medium-sized businesses cited "personal savings" and "retained earnings" as the most important sources of financing continuing operations. Others were lines of credit, trade credit of suppliers, commercial loans and personal credit cards. These were also the sources most frequently cited in 2000.
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Study suggests that the ethical environment of corporate America is improving.
A study published in the April issue of the Journal of Small Business Management finds that the business world is not going the way of Enron. Or the way of Arthur Andersen. Or the way of WorldCom. Instead, research shows that over the past 17 years the ethics of business leaders and professionals is improving. In recent years business owners and managers are making more ethical decisions.
The study was based on responses from more than 5,000 managers of both small and large firms in all 50 states. Over a time period stretching three decades, the authors mailed surveys to respondents in 1985, 1993, and 2001 asking them to judge the degree to which they found 16 scenarios compatible to their own ethical views. The business situations ranged from the illegal to the debatable. With the exception of the 1993 survey, in which small business respondents showed a propensity to be less ethical, there was no difference between large and small firms. Both showed increasingly positive selections.
This study is published in the 50th Anniversary Special issue of the Journal of Small Business Management .
The Journal of Small Business Management features articles on small business research around the world. This quarterly journal covers many topics of interest to researchers and educators, as well as practitioners, in the fields of entrepreneurship and small business. It is the official journal of the International Council for Small Business.
This issue is dedicated to lead author Justin G. Longenecker.
Co-authors Carols W. Moore, J. William Petty, Leslie E. Palich, and Joseph A. McKinney are at the Hankamer School of Business at Baylor University.
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Study: Trends in the prices of rurality -1949 to 2005
The cost of transporting goods and information has generally declined relative to the cost of all goods and services over the last 50 years, and this has made rural areas in Canada more competitive, according to a new study.
At the same time, however, the cost of transporting people has generally risen in relative terms, presenting a challenge for rural areas.
This study uses data from the System of National Accounts and the Consumer Price Index to analyze prices of transporting goods, information and people relative to the price of all goods and services in Canada. It links these trends to the competitiveness of Canada's rural areas.
The concept of "rurality" is defined by distance and population density. A decline in the price of distance would indicate a decline in the price of rurality and, consequently, a greater ability for rural areas to compete with urban areas.
In terms of carrying goods, railroad transport prices have generally fallen in relative terms since the 1960s. The cost of moving goods by truck was flat, or rose slightly, between 1960 and 1977, but fell after that. In contrast, the overall price of air transportation (both goods and people) has generally risen since the 1960s.
The decline in the price of transporting goods is one factor explaining the spread of manufacturing jobs into rural areas. Rural Canada has always had manufacturing jobs, such as fish processing, smelting, sawmills and pulp and paper plants. However, some of the newer manufacturing jobs are part of the network of just-in-time delivery systems.
To the extent that the price of transporting goods might be expected to decline in the future, manufacturing jobs would be expected to continue to spread into rural areas.
Taken together, the trend towards a relative drop in the cost of transporting goods and information represents an opportunity for rural-based manufacturers.
The upward trend in the relative price of transporting people has important implications for rural areas of Canada. For example, the increase in the relative cost for city residents to visit rural areas represents a challenge for rural-based tourism.
The price of communicating information from one location to another has generally been declining over time.
Within the communications sector, telephone services fell from the early 1960s to the end of the 1980s and have been more-or-less flat since then, relative to the cost of all goods and services. Further, the cost of accessing the Internet has declined, relatively, in recent years.
This has led to a relative decline in the price of rurality, with respect to communication flows. However, the decline of telecommunication prices may even have been greater in urban areas.
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Mining Executives Rate the Investment Climate of Jurisdictions Around the World
TORONTO - The ninth annual Survey of Mining Companies, released today by The Fraser Institute, holds good news for Canada's western provinces and bad news for the eastern provinces.
In this year's survey, companies responsible for a combined total of US$1.83 billion in international exploration (in 2005)-a third of the global total-rate the policy attractiveness and mineral potential of mining jurisdictions in North America and internationally.
Companies are asked to provide their opinions about the investment attractiveness of 64 jurisdictions around the world, on every continent except Antarctica, including the Canadian provinces and territories, the Australian states, selected US states, and jurisdictions across Europe, Asia, and Africa.
The Canadian Results
For the first time in the survey's history, British Columbia ranks in the top half of policy attractiveness. Until last year, British Columbia had languished in the bottom 10 spots on the ranking and was typically in the bottom five.
The three Atlantic Provinces in the survey-New Brunswick, Newfoundland, and Nova Scotia-all suffered declines in this year's survey, while Alberta is now seen to have the world's second most attractive policy environment.
Both Nova Scotia and Newfoundland lag British Columbia for the first time in the survey's history. New Brunswick remains ahead, though it has been consistently falling while British Columbia has been consistently rising.
"British Columbia may provide an object lesson for the Atlantic provinces," said survey coordinator Fred McMahon. "British Columbia's policy environment began changing for the better several years ago; however this only gradually resulted in better scores. Perceptions are slow to change in the mining industry-mining companies spend a long time pumping money into the ground before they start making money. If miners are going to invest, they need to know that a good policy today will still be in place when they start making their money back. Damage to a province's reputation can take years to repair."
Manitoba, Quebec, Saskatchewan, and Ontario continue to score highly compared to their global competition, while the Northwest Territories and Nunavut are close to the bottom of the rankings. The Yukon has made steady advances over the last three years and now is in the top third of the survey.
Policy Potential Index
The survey queries miners on 12 separate policy areas affecting mining. The Policy Potential index is a composite measure of these areas.
"The Policy Potential Index serves as a report card to governments on how attractive their policies are from the point of view of an exploration manager," said McMahon. "A jurisdiction's policy climate has taken on increased importance in attracting and winning investment in today's globally competitive economy where mining companies may be examining properties located on different continents."
Nevada obtained the highest score on this index, while Zimbabwe received the lowest.
This is the sixth straight year Nevada is rated as having the best mineral policies. The other top 10 policy jurisdictions are Alberta, Manitoba, Chile, Quebec, Mexico, Saskatchewan, Arizona, Ontario, and Utah. For the most part, last year's top 10 jurisdictions were either in this year's top 10 or nearly so.
Zimbabwe continues to set new records for its poor performance. Its last place score of 7.6 last year was the lowest score recorded in the previous four years. This year Zimbabwe's score fell to 2.4, the lowest in the survey's history. Also at the bottom were Papua New Guinea, DRC Congo, Venezuela, the Philippines, Indonesia, Russia, Zambia, Bolivia, and California.
Current Mineral Potential Index
Current Mineral Potential is based on respondents' answer to the question on whether a jurisdiction's mineral potential under the current policy environment encourages or discourages exploration.
Chile, Nevada, Mongolia, Quebec, Mali, South Australia, Ghana, Mexico, Ontario, and Western Australia hold the top 10 slots. All scored strongly last year and most were in last year's top 10.
Not surprisingly, the jurisdictions at the bottom of the list are also consistent with last year's poor performers-and in most cases with poor performers in the Policy Potential Index.
Colorado comes in last and is joined by California, Zimbabwe, Ireland, Wisconsin, Washington, Minnesota, Ecuador, DRC Congo, and Venezuela. These jurisdictions all scored near the bottom last year, with the partial exception of Ireland (39 out of 64 last year), which has generally fallen in this survey from last year's.
Best Practices Mineral Potential Index
From a purely mineral perspective, the most appealing jurisdictions are Nevada, Nunavut, Canada's Northwest Territories, Indonesia, Papua New Guinea, DRC Congo, Ghana, Mali, Peru, and Russia. All scored highly last year, except for Ghana and Mali, which were in the middle of the pack.
The least appealing jurisdictions are Nova Scotia, Alberta, Finland, Ireland, Wisconsin, New Brunswick, New Zealand, Sweden, Tasmania, and Spain. Not surprisingly, there is a large correspondence between these rankings and rankings in previous years.
Room for improvement
The survey also calculates which jurisdictions have room to improve their regulatory environments. Many of the jurisdictions with the greatest room to improve are developing countries where additional investment, and job, wealth, and capital creation are most needed.
These include the Zimbabwe, DRC Congo, Papua New Guinea, Zambia, China, Venezuela, and Peru. Except for China, miners indicated significant security problems with all of these nations, particularly DRC Congo and Zimbabwe. Nearly three-quarters of the respondents indicated they would not consider investment in these two nations due to security concerns.
However, some of worst performers are from the developed world and include Colorado, California, and Montana.
"Mining executives are becoming increasingly willing to invest their exploration dollars around the globe. Attractive geology is necessary, but not enough. Governments who want to maintain viable mining industries in their jurisdictions must enact favourable policies to encourage investment," said McMahon.
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Investor Confidence Index Rises to 82.6 in March
BOSTON -The investment research and trading arm of State Street Corporation , released March 21, 2006 the results of the US based State Street Investor Confidence Index(R) for March 2006.
According to the March index, investor confidence increased to 82.6 from February's revised reading of 72.1. Looking regionally, the confidence of North American institutional investors rose strongly to 94.1 in March from a revised reading of 83.3 in February. The European Index increased from 78.9 in February to 93.6, and the Asian Index declined slightly from 80.7 to 79.2 in March.
Developed through State Street Global Markets' research partnership, State Street Associates (SSA), by Harvard University professor Ken Froot and SSA Director Paul O'Connell, the State Street Investor Confidence Index(R) measures investor confidence on a quantitative basis, analyzing actual buying and selling patterns of institutional investors. The index is based on financial theory that assigns precise meaning to changes in investor risk sentiment, or the willingness of investors to hold proportionally more or less of their portfolio in equities. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence.
"We see a strong resurgence of interest in broad allocations to risky assets by professional investors," commented Froot. "The updraft is very strong in the U.S. and in Europe -- strong enough to reverse the recent downward trend in confidence."
"Investors over the past six months had been quite concerned about the prospects of a protracted tightening in liquidity and were taking a very defensive tack with regard to their portfolios," commented O'Connell. "In March, we have seen that these concerns have ebbed, leaving investors more optimistic that the Fed need not raise rates much further. This, combined with a sense that growth remains solid, has led to investors acquiring more broadly diversified positions in risky assets -- a sure sign of increased confidence."
Since its launch in September of 2003, the State Street Investor Confidence Index(R) has become a key economic indicator for asset owners, investment managers and central banks. As the only index providing a quantitative measure tracking the common buying patterns of institutional investors around the world, the State Street Investor Confidence Index(R) offers a unique look into the investment behavior and decisions of thousands of professional investors and their investment decisions.
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TransUnion asks Canadians:What Will You Do With Your Tax Refund? ~Almost Seven in Ten Plan to “Buy Something I Need”~
Toronto – TransUnion, a leading authority on consumer credit, today released a survey conducted by Roper Public Affairs on what Canadians plan to do with a possible tax refund. The survey found that the top three intended uses for a refund in Canada are: 1) buy something they need (66%); 2) save it for a rainy day (58%); and 3) pay down their mortgage or other bills (58%).
The survey, which allowed respondents to select more than one of six possible responses to explain how they would allocate their total refund dollars, also discovered:
49% would pay off credit card bills
35% would splurge on something fun
33% would take a vacation
“It appears that many Canadians are seeing a tax refund this year as a way to buy necessities or serve as a safeguard against future expenses,” said Tom Reid, Director, Consumer Solutions at TransUnion in Canada. “This fiscal discipline is encouraging.”
Reflecting the higher debt vulnerability of younger Canadians, the survey also found that those between the ages of 18 and 29, are more likely than their older counterparts over the age of 50 to say that they would spend their money:
· on something they need (76% vs. 60% of those 50 and older)
· to pay down their mortgage or other bills (74% vs. 38%)
· to pay off their credit card bills (52% vs. 37%)
“Tax refunds can be a helpful and surprising windfall,” said Reid. “But the true path to financial empowerment is for consumers to keep well informed about their credit standing and work to keep it strong, so they will have better access to funds when they really need them.”
Canada vs. America
In January of this year, TransUnion asked Americans the same question about their tax return dollars, and their view on spending that money is different than the Canadian view. More Americans said they would put that money away for a rainy day or another reason (70% vs. 58% of Canadians), while fewer Americans said they would buy something they need with their tax return dollars (57% vs. the 66% of Canadians who chose this option).
Taking Out Loans for Retirement
TransUnion also asked Canadians if they were planning on taking out a loan this year to finance their retirement accounts, and the overwhelming majority (94%) said they are not planning on it. Some Canadian financial planners suggest using loans to finance retirement accounts prior to the RRSP contribution deadline because of its tax advantages.
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Manpower Employment Outlook Survey Predicts Active Hiring Climate in Canada for Second Quarter of 2006
Toronto - Canadian employers expect a strong hiring climate for the April to June period of 2006 according to the latest results of the Manpower Employment Outlook Survey, the most extensive, forward-looking employment survey in the world.
The survey of more than 1,700 Canadian employers reveals that 34 per cent plan to increase their payrolls while five per cent anticipate cutbacks for a Net Employment Outlook of 29 per cent. Of those polled, 58 per cent expect no changes and three per cent are unsure of their staffing intentions.
With seasonal variations removed from the survey data, the Net Employment Outlook of 21 per cent is a four per cent increase from the previous quarter, indicating hiring expectations continue to be solid for the second quarter of 2006.
“Nationally, this quarter’s Net Employment Outlook indicates that the solid hiring activity seen in the first quarter should expand slightly,” said Lori Procher, VP and General Manager for Manpower Canada. “Employers are telling us that over the next three months they will continue to add to their payrolls at an even higher rate.”
“Three of the four regional projections are in line with the national Net Employment Outlook,” Procher adds. “Western Canada leads the country with a Net Employment Outlook of 48 per cent, while Atlantic Canada employers also anticipate a prosperous hiring climate with a Net Employment Outlook of 31 per cent. Employers in Ontario expect an active hiring climate with a Net Employment Outlook of 24 per cent. Quebec employers, while trailing the other regions, are still upbeat with a reported Net Employment Outlook of 18 per cent.”
Of the 10 nationally surveyed industry sectors, Mining employers report the most brisk results for the April to June period of 2006 with a Net Employment Outlook of 31 per cent, once seasonal variations are removed. Employers in the Public Administration sector anticipate a healthy quarter with a Net Employment Outlook of 29 per cent. The Finance, Insurance & Real Estate and Wholesale & Retail Trade sectors also expect a solid hiring climate both with reported Net Employment Outlooks of 26 per cent.
Construction
Employers in the Construction sector expect a respectable hiring pace with a seasonally adjusted Net Employment Outlook of 18 per cent. This is an increase from the previous quarter, when the Net Employment Outlook was 17 per cent and four percentage points weaker compared to this time last year.
Education
Education sector employers predict a strong quarter with a seasonally adjusted Net Employment Outlook of 23 per cent. This is a 17 per cent improvement from the previous quarter when the Net Employment Outlook was six per cent. It is also an increase of ten per cent compared to the same period last year and the strongest Net Employment Outlook for the sector since the third quarter of 2003 when it was 31 per cent.
Finance, Insurance & Real Estate
Employers in the Finance, Insurance & Real Estate sector project a solid hiring climate with a seasonally adjusted Net Employment Outlook of 26 per cent. This Net Employment Outlook is a nine per cent increase from the previous quarter, and the strongest Net Employment Outlook for the sector since the fourth quarter of 2000 when it was 28 per cent.
Manufacturing – Durable Goods
A moderate three-month period is anticipated by employers in the Manufacturing – Durable Goods sector, where a Net Employment Outlook of 12 per cent is reported once seasonal variations are removed. This Net Employment Outlook is a five per cent increase from the previous quarter, but is a decrease from the same time last year when the Net Employment Outlook was 15 per cent.
Manufacturing – Non-durable Goods
Manufacturing – Non-durable Goods sector employers project a modest hiring climate with a seasonally adjusted Net Employment Outlook of 10 per cent. This is a decrease of three per cent from the previous quarter and a two per cent increase to the Net Employment Outlook reported this time last year.
Mining
Employers in the Mining sector anticipate a brisk second quarter with a Net Employment Outlook of 31 per cent after seasonal variations are removed. Hiring plans in Mining fell by 15 per cent from the previous quarter, but this is an increase compared to the same time last year when the Net Employment Outlook was 20 per cent.
Public Administration
Public Administration sector employers predict an active hiring climate with a Net Employment Outlook of 29 per cent. Hiring expectations increased by six per cent from the previous quarter and from one year ago, when the Net Employment Outlook was 23 per cent.
Services
Employers in the Services sector expect an active hiring climate for the upcoming quarter with a seasonally adjusted Net Employment Outlook of 23 per cent. This is a decrease of four per cent from the previous quarter when the Net Employment Outlook was 27 per cent and an increase of two per cent from the same time last year.
Transportation & Public Utilities
Employers in the Transportation & Public Utilities sector predict a strong outlook with a seasonally adjusted Net Employment Outlook of 22 per cent. This is a five per cent increase from the previous quarter when the Net Employment Outlook was 17 per cent as well as a five per cent increase when compared to the same time last year. This is the strongest forecast for the sector since the first quarter of 2001.
Wholesale & Retail Trades
Employers in the Wholesale & Retail Trade sector project a healthy staffing picture for the second quarter of 2006 with a Net Employment Outlook of 26 per cent. Results for the sector improved from last quarter by eight percentage points and also increased seven percentage points compared to this time last year.
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. The Manpower Employment Outlook Survey is the most extensive, forward-looking survey in the world, asking employers to forecast employment over the next quarter. The survey has been running for more than 40 years and is one of the most trusted surveys of employment activity in the world. The Manpower Employment Outlook Survey in Canada is based on interviews with more than 1,700 public and private employers in 43 markets across the country and is considered a highly respected economic indicator. The margin of error for the Canadian survey is +/- 2.4 per cent.
About Manpower Inc.
Manpower Inc. (NYSE: MAN) is a world leader in the employment services industry; creating and delivering services that enable its clients to win in the changing world of work. The $16 billion company 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 4,400 offices in 72 countries and territories enables the company to meet the needs of its 400,000 customers 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 Inc. operates under five brands: Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management. More information on Manpower Inc. is available at www.manpower.com.
Celebrating 50 years, Manpower Canada’s employment services delivered through its network of over 50 offices, include administrative, industrial, skilled trades and contact centre personnel as well as the assignment of contract professionals in information technology, scientific, finance, engineering, telecommunications and other professional areas under the Manpower Professional brand. More information on the company can be found on Manpower Canada’s Web sites, manpower.ca and manpowerprofessional.ca.
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National Contact:
John Settino
The iPR Group
+1.416.901.5963
john@theiprgroup.ca
Global Manpower Employment Outlook Survey Reveals Robust Hiring Activity Ahead in Japan, and a Return to Optimism Among German Employers
U.S. Hiring to Continue Rolling Along, as China Slows the Pace from Last Year
MILWAUKEE, WI, US (14 March 2006) – The Manpower Employment Outlook Survey released today revealed that second-quarter hiring is expected to be positive in 23 of 24 countries and territories surveyed, with Japanese and German employers reporting their most optimistic hiring plans since the survey began in these countries in the second quarter of 2003. The strongest second-quarter hiring prospects reported globally were in Japan, India, Taiwan, Peru, New Zealand and Hong Kong, with only Italian employers reporting a negative hiring outlook for the quarter ahead. This quarter also marks the first time the survey has been conducted with employers across Peru. The quarterly report from Manpower Inc. (NYSE:MAN) is the most extensive, forward-looking employment survey in the world, gathering data from more than 47,000 employers across the globe each quarter.
“Despite high fuel prices and other challenges, the global labor market looks set to improve in most of Europe and Asia in the second quarter, with steady hiring set to continue in the Americas,” said Jeffrey A. Joerres, Chairman & CEO of Manpower Inc. “German employers are saying they will begin to add employees again, albeit modestly, and hiring activity in Japan should be vigorous, beyond what we normally see in the second quarter – their peak hiring season. Chinese employers say they will reduce their hiring activity compared to last year at this time, while U.S. employers expect to add to their payrolls at a continued steady pace.”
Employers in 10 of 12 European countries surveyed are reporting stronger hiring intentions compared to first quarter and nearly two-thirds are reporting improvements from last year at this time. Second-quarter hiring prospects are the strongest in Spain, Norway, Sweden, Ireland and the UK, based on seasonally adjusted data. Notably, the only negative Outlook for Europe was reported in Italy where employers have been pessimistic for three consecutive quarters. German, Spanish, Swiss and Dutch employers are reporting their strongest hiring intentions since the survey began in those countries.
“Compared to the first three months of the year, hiring intentions in Europe are decidedly improved, however, Italy continues to lag behind,” said Joerres. “Encouragingly, German employment prospects have improved from both the first quarter and a year ago at this time, with the strongest hiring activity anticipated by employers in the Finance/Insurance/Real Estate/Business Services sector.”
Of the eight countries and territories included in the survey across Asia Pacific, hiring activity is expected to be strongest in Japan, India and Taiwan, while the weakest hiring in the region is anticipated in Singapore, Australia and China. While hiring is set to improve from first quarter in the majority of countries surveyed in Asia Pacific, employment prospects are weaker than the same quarter of 2005 in Australia, China, New Zealand and Taiwan.
“A large part of the robust hiring expectations in Asia Pacific can be attributed to activity in the Finance/Insurance/Real Estate, Manufacturing, and Services sectors, where improvements from first quarter were reported in these sectors across nearly every country,” said Joerres. “Meanwhile, employers in five of six industry sectors we survey in China say they will slow hiring from one year ago, the only exception is the Finance/Insurance/Real Estate sector.”
Hiring across the Americas is expected to remain stable from last year at this time. Employers in Peru joined the survey this quarter with particularly optimistic second-quarter hiring plans, the strongest of the four countries surveyed. The Canadian outlook remains identical to one year ago.
“The labor markets in North America have been incredibly stable and, as is so often the case, the Mexican labor market is moving in tandem with its northern neighbor,” said Joerres. “There is notable optimism amongst employers in the Construction sector in both the U.S. and Mexico, where job seekers should find favorable conditions.”
The next Manpower Employment Outlook Survey will be released on the 13h of June 2006 to report hiring expectations for the third quarter of 2006.
The Manpower Employment Outlook Survey is available free of charge to the public through their local Manpower representative in participating countries. To receive e-mail notification when the survey is available each quarter, interested individuals are invited to complete an online subscription form at http://investor.manpower.com/distlist.cfm.
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Note to Editors
Full survey results for each of the 24 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found in the Manpower Research Center at www.manpower.com/meos. In addition, all tables and graphs from the full report are available to be downloaded for use in publication or broadcast from the Manpower Web site at http://www.manpower.com/library.
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 only forward-looking survey of its kind, unparalleled in its size, scope, longevity and area of focus. The Survey has been running for more than 40 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 47,000 public and private employers worldwide and is considered a highly respected economic indicator.
The Manpower Employment Outlook Survey is currently available for 24 countries and territories: Australia, Austria, Belgium, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Peru, Singapore, Spain, 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 Peru joined in 2006. For more information, visit the Manpower Inc. Web site at www.manpower.com and enter the Research Center.
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TEC International: Canadian CEOs See a Bright Future for the Nation's Economy in 2006
March 7 - Confidence level continues to rise. For the second quarter in a row, Canadian chief executives' overall confidence in the nation's economy surged ahead, according to a survey released today by TEC International. Canadian bosses' confidence, which had been consistently slipping for the first three quarters of 2005, rebounded last quarter to 121.9, a change in perspective mirrored by this quarter's 0.5 percent gain to 122.4.
Canada's SME leaders feel that the economy is about the same as that of a year ago; however they are confident that the economy will continue to surge ahead over the next 12 months. They anticipate greater returns in revenue and profit in 2006 and will therefore expand their fixed investment expenditures and hire new staff to support this anticipated growth.
Of the 79 percent of respondents who anticipate hiring in 2006, the bulk will increase their staff size by steadily hiring over the next 12 months. However 18 percent will be topping up their staff numbers during Q2 of this year. Of those hiring in 2006, 47 percent will be using traditional sources, such as business classified ads and schools, to find candidates.
Employers also noted that it is taking them longer to find the right employees, supporting the notion that Canadian job seekers have the upper hand in today's job market. While 49 percent of those surveyed listed factors such as oil/energy prices, the rise of the Canadian dollar and the like as having the most significant impact on hiring, 51 percent saw the issue as a lack of qualified candidates.
Additionally, staffing took the number one spot as the most significant business issue facing SME businesses with 43 percent of respondents. The top priority for business in the next 12 months was identified as taking advantage of growth opportunities, such as entering new markets and acquiring existing companies, while staffing came in a close second with 35 percent.
Fueled in large part by the rising cost of oil and gas, the Canadian dollar will continue its upward climb, according to this quarter's respondents. To offset the cost of energy, 29 percent of business leaders will be raising their prices while 27 percent opted to absorb it.
Canada's business leaders are making preparations in case they are struck by a disaster, recession or a flu pandemic. Of those surveyed, 27 percent indicated that preparations are underway to ensure their business survives and 12 percent said they already have plans in place. Eighty-four percent anticipate that an avian flu pandemic would have a negative impact on their operations.
For over two years, the TEC Confidence Index has forecasted annual changes in the economy, including job creation and price increases. The quarterly survey continues to serve as an accurate snapshot of Canada's economic landscape.
Over 100 CEOs of small to mid-size businesses took part in the survey and shared their views on current economic trends, issues affecting business and Canada as a whole.
TEC Confidence Index Component Questions
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Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006
Index
Score: 124.6 126.1 115.4 116.2 112.4 112.1 121.9 122.4
Current
Economic
Conditions 155 137 145 125 117 125 136 134
Expected
Economic
Conditions 137 129 113 109 96 102 109 119
Planned
Fixed
Investment 139 154 128 136 144 130 149 146
Planned
Revenue
Growth 171 181 165 174 171 166 176 181
Expected
Profit
Growth 160 166 156 156 155 146 159 155
Expected
Change in
Employment 147 154 135 147 138 148 159 158
NOTE: All component questions are scored as the percent giving favorable
replies minus the percent unfavorable plus 100. The TEC Confidence
Index is the sum of the components calculated as a percentage of
the level recorded in the Q2 2003 survey.
ABOUT THE CANADIAN TEC CONFIDENCE INDEX
Canadian businesses with annual sales between $1 million and $900 million represent the most vital component of the nation's economy. This small to mid-size business sector creates 75 percent of all new jobs and generates 50 percent of revenue. The opinions of these business leaders provide a clear snapshot of current economic, market, and industry trends and demonstrate their plans for growth over the next 12 months. These insights provide a leading indicator for employment, capital expenditure, sales, and revenue trends.
The Q1 2006 TEC Confidence Index is a compilation of responses from more than 100 Canadian CEOs of small to mid-sized companies, surveyed February 22 - March 2, 2006. The TEC Confidence Index is the only comprehensive report of their opinions and projections. TEC International conducts the TEC Confidence Index quarterly.
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Does Money Really Buy Happiness? First-of-a-Kind Survey Offers Sneak Peek at the Values & Views of Ultra-Rich
VANCOUVER, BRITISH COLUMBIA- March 7 - A new Sensus Research report examining the attitudes and opinions of Canada's ultra-rich - individuals with a net worth of $10 million plus - revealed interesting insights into this unique segment of the population. The exclusive report was commissioned and underwritten solely by the Vancouver-based T. Stenner Group, a specialized group of private professional advisors who manage the financial affairs of ultra high net worth families.
Among the results is a finding that 48% of respondents were neutral or actually disagreed with the statement, "As I have gotten wealthier, I have gotten happier." Further findings also support the claim that with great wealth come great worry and responsibility. The top wealth-related concern for one-third of respondents, or 34%, is maintaining their lifestyle.
"This report provides a rare glimpse into a very exclusive and private group," said Sensus President Rob Dawson. "The attitudes of these wealthy and influential respondents have real implications for the Canadian economy as a whole."
More than just studying the attitudes of Canada's ultra-rich, the report outlines their responses to several questions in the following areas: passion investments & interests, philanthropy & family values, trends in real estate, wealth & advice and professional relationships.
Highlights:
Passion Investments & Interests
When asked about activities and hobbies, travel was rated as the most popular by a majority of respondents (53%). Golf, a favourite pastime of 39% of UHNW individuals, was ranked second. These individuals are avid collectors with 85% owning some type of collection. Art (90%), Antiques (72%) and Wine (69%) are cited as the most popular collections they own.
Philanthropy & Family Values
Philanthropy is a significant part of the UHNW Canadian's way of life as 69% of respondents donated over $100,000 to philanthropic causes or organizations in the past year. 55% of respondents are specifically committed to the arts while 70% are committed to children's charities.
Benefits & Challenges of Wealth
The top ranked benefits of wealth are "Gives me long term security and peace of mind" and "Allows me to provide advantages for my family." Approximately one-quarter (24%) of respondents are more worried that their children or grandchildren will become less motivated because of family wealth, an effect termed "affluenza".
Trends in Real Estate
From the perspective of the survey sample, Canadian real estate is currently a seller's market. Only 5% of those surveyed believe real estate values are relatively cheap at present. At the same time, two-thirds of respondents, 67%, believe the Canadian real estate market is set to take a downward turn within the next 12 months.
Wealth & Advice
When asked "If you had to invest 20% of your own net worth tomorrow, which sector would make the most sense to you?" close to half of those surveyed responded with the stock market.
Professional Relationships
Survey respondents were most likely to maintain a professional relationship with an accountant with 95% indicating they currently use one. While only 35% of those with an accountant chose their accountant as their 'personal CFO', 71% of those using a Family Office Services Group would make them their personal CFO.
"The T. Stenner Group TrueWealth Report paints a picture of Canada's affluent population that may be very different from common perceptions of this group," says Dawson. "While the ultra-affluent certainly enjoy the benefits of their wealth, it is clear that with wealth comes increased responsibility to both family and society."
About the 2006 T. Stenner Group TrueWealth Report
The 2006 T. Stenner Group TrueWealth Report is a confidential, exclusive study of the views and opinions of Canada's ultra-affluent. The results act as a knowledge bank to shed light on what drives the ultra-affluent in their decisions on investing and lifestyle choices.
Data for the TrueWealth Report was collected from November 10 to December 19, 2005. A total of 165 respondents from across Canada participated in the survey, allowing for a confidence level of plus or minus 7.6%, 19 times out of 20.
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Canadians to Spend on Their Homes and Hitting the Road in 2006 2006 MasterCard Purchasing Outlook finds cautious consumers still planning to spend in key categories; "selective consumerism" takes over
TORONTO, Feb. 27 - Most Canadian consumers are planning to be cautious and rational in their major purchasing in 2006. Yet, according to the 2006 MasterCard Purchasing Outlook, they still plan to selectively spend money on today's priorities: trips, technology, and a trendy home. MasterCard Canada commissioned a survey of Canadian adults about their spending intentions in 2006.
"Canadians are hitting the spending brakes in an attempt to slow down their overall consumption, yet at the same time, they're still intending to make some key purchases, particularly on their homes and on personal travel," said Craig Penney, Vice President, Planning, MasterCard Canada. "It's an attitude of selective consumerism that's taking over - Canadians are willing to make purchases that will improve their lifestyle while managing overall spending carefully."
Some highlights of the 2006 MasterCard Purchasing Outlook: - A third (33%) of Canadians said their spending intentions for 2006 were best described as cautious, and they plan to make decisions month to month. Another 30 per cent expect to spend the same amount as last year. Fifteen per cent intend to spend to improve their lifestyle, 12 per cent will scale back their spending, and nine per cent intend to splurge.
- MasterCard expects consumer spending on travel and entertainment to increase in 2006. Sixty-five percent of respondents expect to do some personal travel in 2006 and more than half of those people (52%) expect to spend more on travel than they did in 2005.
- Home décor and furnishings, major home appliances and entertainment equipment are among the most popular planned purchases for the year.
- Most major purchases such as appliances and home electronics are planned for late spring and summer.
- Three in four (76%) homeowners are planning to redecorate, renovate or repair their home.
The Mindset: Stable, Cautious, Investment-Oriented
The survey found most consumers are in a hold steady pattern, with spending more likely to be oriented to going out (34%), investing in their home (28%), and travel (16%). In addition, MasterCard asked Canadians to select a description that most closely characterized their spending intentions for 2006:
- Cautious and Careful - The most frequent response, selected by one third of respondents (33%): "I am not sure how my year is going to go so I am going to be careful about any new spending and make decisions month to month." Those with less than $40,000 in household income were the most likely (48%) to describe themselves as cautious spenders.
- Status quo - 30 per cent selected: "I expect my spending this year to be about the same as last year." Forty per cent of those aged 55 and over were in this category.
- Improvement - 15 per cent of respondents' spending was oriented to: "I am planning to spend on improvements to my life and home such as a home renovation or redecoration." The improvement orientation is particularly strong in Manitoba and Saskatchewan (24%) and B.C. (22%).
- Scaling back - 12 per cent of respondents described themselves as: "I will be spending less this year (than last year)." Atlantic Canada had the largest percentage (24%) of respondents who said this. Interestingly, those in the middle to high income brackets of $40,000 to $60,000 (20%) and $80,000 to $100,000 (17%) were most likely to report they were scaling back.
- Indulgent - just nine per cent said: "I intend to spend more on myself and my family and friends, including some special treats." Individuals in households with annual incomes of $80,000 to $100,000 were most likely (14%) to feel indulgent.
"Across the board, Canadians are monitoring their spending closely," said Penney. "Higher income doesn't equate to more confidence or free-spending."
Planned Major Purchases
MasterCard explored major purchase intentions and found that home-related items, such as furniture and electronics are the most popular.
"It's a remote control world. Home entertainment systems are increasingly considered staple goods and not luxury items," said Penney.
Among the findings:
- Twenty four per cent of consumers expect to purchase major furniture with June and July being the most likely months to purchase.
- Eighteen per cent expect to buy a TV, DVD player and/or home entertainment system. Most likely months are April, June or July.
- Seventeen per cent expect to buy a home computer and/or video gaming system, with June, July and September the most popular months.
- Fifteen per cent of all consumers expect to make a major garden purchase; April, May and June are the most likely months.
- Fifteen per cent expect to purchase a vehicle. May, June and August were the most frequently cited timing.
Purchase Category Expectations
Based on consumer expectations of spending, MasterCard expects the following categories will see stable or growing sales in 2006:
- Clothing, shoes and accessories: 85 per cent of consumers expect to spend the same or more than in 2005 (58% say the same, 27% say more).
- Personal care products and services: 88 per cent expect to spend the same or more (74% the same, 14% more).
- Entertainment: 81 per cent intend to spend the same or more (56% the same, 25% more).
- Home décor and furnishings: 60 per cent intend to spend the same or more (32% the same, 28% more). This product category received the largest expectation of increased spending among general consumers.
Based on consumer responses, the following categories may see flat or lower spending in 2006:
- Home electronics: 77 per cent intend to spend the same or less (32% say the same, 45% say less).
- Personal electronics: 79 per cent expect to spend the same or less (37% the same, 42% less).
- Sporting goods: 79 per cent expect to spend the same or less (45% the same, 34% less).
- Toys, crafts and hobbies: 75 per cent expect to spend the same or less (47% the same, 28% less).
"Many Canadians are expecting to spend less on home and personal electronics in 2006, however this may be a reflection of how much they already spend in these areas," commented Penney. "Certain products, such as iPods and home gaming systems, were in big demand last year, particularly during the holiday season. Consumers may be considering taking a break in this category. That being said, a powerful product introduction could change their outlook."
Homeowners' Plans
MasterCard also looked specifically at the purchase plans of owners of homes and condominiums:
- Almost half (46%) plan some kind of redecorating project like repainting.
- Thirty per cent (30%) are planning major renovations or repairs.
- One in four (25%) plan to landscape.
- Ten per cent (10%) are planning to purchase a new appliance.
"Canadian homeowners are bullish about investing in their home," said Penney. "It's an indication of confidence in their home as a primary long term investment and the benefits of enhancing it. For many Canadians, the enjoyment of improving their home is priceless - more than one in four Canadians say the most enjoyable spending they do is on their home."
Hitting the Road
Two thirds (65%) of the survey respondents expect to do some personal travel this year. Half (52%) of those consumers expect to spend more than last year, and almost four in 10 (38%) expect to spend the same amount. The most popular travel destinations are within Canada (40%), the United States (30%), and Europe (30%). Sixteen per cent will keep their personal travel within their home province.
This wanderlust will drive a number of sales categories. Those planning personal travel expect to do the following travel-related purchasing:
- Airline tickets (69%).
- Hotel or motel room rental (62%).
- Car rental (31%).
- Campground or RV site rental (23%).
- Organized tour (18%).
- Train tickets (13%); bus tickets (12%).
- Cruise (12%).
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Survey Suggests Job Seekers Should Follow Up Within Two Weeks of Submitting Resume
TORONTO, Feb. 21 - It's a common quandary for job seekers: Are you being pushy if you contact an employer after submitting a resume? A new survey suggests the opposite may be true. Eighty-six per cent of executives polled said job seekers should contact hiring managers within two weeks of submitting application materials. Only 4 per cent said professionals should refrain from communicating once a resume has been sent.
The survey was developed by Robert Half International Inc., the world's first and largest staffing service specializing in accounting, finance and information technology. It was conducted by an independent research firm and includes responses from 100 Canadian executives.
Executives were asked, "How long should a job seeker wait to follow up with the hiring manager after submitting a resume?" Their responses:
One week or less ...........................33%
One to two weeks ...........................53%
Two to three weeks ..........................7%
Three weeks or more .........................3%
Don't follow up .............................4%
100% Executives also were asked, "In your opinion, what is the best way for a job seeker to follow up with a hiring manager after submitting a resume?" The top three responses were telephone (46 per cent), via e-mail (34 per cent) and a handwritten note (8 per cent).
"Employers value initiative and enthusiasm, and thoughtful post-resume communication underscores these traits," said Max Messmer, chairman and CEO of Robert Half International Inc. and author of Managing Your Career For Dummies(R) (John Wiley & Sons, Inc.).
Messmer added that the method for contacting a prospective employer is less important than the message itself. "Whether communicating in writing or over the telephone, job seekers should demonstrate their knowledge of the company while reinforcing their qualifications and sincere interest in the position. This extra step can give professionals a significant advantage over less-proactive candidates." |
2006 Salary Guide for IT Professionals Research Shows Average Starting Salaries to Remain Stable
TORONTO - Information technology (IT) professionals in Canada can expect starting salaries in 2006 to remain near or at 2005 levels, according to the Robert Half Technology 2006 Salary Guide. On average, starting salaries are projected to increase 1.7 per cent in 2006. Larger increases in base compensation are expected in high-demand specialties such as IT auditor, business systems analyst and business continuity analyst.
Robert Half Technology is a leading provider of IT professionals on a project and full-time basis. The annual salary survey is based on an in-depth analysis of thousands of job orders managed by the company's Canadian offices.
"A shrinking candidate pool and ongoing IT upgrades are heightening the competition for talented IT professionals," said Sandra Lavoy, a vice-president with Robert Half Technology. "To secure candidates, companies are reassessing their compensation packages and streamlining their hiring processes to avoid losing top candidates to competing employers."
According to research conducted by the company, IT auditors will see the greatest starting salary increases of any single job classification in 2006, with base compensation expected to rise 7.0 per cent, to the range of $61,750 to $87,500 annually. "Corporate governance initiatives are fuelling the demand for individuals with this specialty," Lavoy said. "Individuals who can accurately identify, recommend and implement systems upgrades will be increasingly marketable."
The survey also revealed that base compensation for business systems analysts in database administration is projected to increase 6.5 per cent in 2006, to between $58,250 and $80,250 a year. Average starting salaries for business continuity analysts are expected to rise 5.9 per cent, to the range of $57,000 to $87,250 annually.
Other key findings from the Robert Half Technology 2006 Salary Guide include:
- Lead applications developers will earn average starting salaries between $64,250 and $84,250 annually, an increase of 4.9 per cent over 2005 levels.
- Base compensation for data security analysts will increase 4.6 per cent, with starting salaries in the range of $68,250 to $96,250.
- Data analysts/report writers can expect base compensation in the range of $56,750 and $78,750, a gain of 4.2 per cent over 2005 starting salaries.
- Technical Writers will see starting salaries rise 4.2 per cent to the range of $40,750 and $59,500 per year.
- Average starting salaries for application architects will rise 4.0 per cent to the range of $73,250 to $94,250 annually.
Industries forecasting particularly strong demand for IT professionals in 2006 include legal services, oil and gas and business services. However, hiring activity varies significantly by geographic region. (All salaries listed are averages from across Canada. A formula for determining compensation variances for select Canadian cities is included in the Salary Guide. Information in the Salary Guide is based on the thousands of job searches, negotiations, and project and full-time placements made by Robert Half Technology recruiting specialists. Continuing or ongoing salaries are not reported since seniority, performance, work ethic and other hard-to-measure factors can affect pay as individual work histories develop.
Organizations of all sizes and in all industries refer to the Robert Half Technology Salary Guide to help determine appropriate compensation levels for IT staff and to prepare annual budgets and business plans. In addition, educational institutions and government agencies use the guide for research purposes.
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US Investor Confidence Index Declines to 76.0 in January
BOSTON - State Street Global Markets, the investment research and trading arm of State Street Corporation (NYSE:STT), released the results of the State Street Investor Confidence Index(R) for January 2006.
According to the January index, investor confidence decreased to 76.0 from December's revised reading of 83.8. Looking regionally, the confidence of North American institutional investors fell to 88.0 in January from a revised reading of 102.1 in December. The European Index increased from 61.0 in December to 76.0 in January, and the Asian Index rose from 75.7 in December to 80.4 this month.
Developed through State Street Global Markets' research partnership, State Street Associates (SSA), by Harvard University professor Ken Froot and SSA Director Paul O'Connell, the State Street Investor Confidence Index(R) measures investor confidence on a quantitative basis, analyzing actual buying and selling patterns of institutional investors. The index is based on financial theory that assigns precise meaning to changes in investor risk sentiment, or the willingness of investors to hold proportionally more or less of their portfolio in equities. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence.
"This month we see strong divergence between the risk appetite of North American institutional investors and their counterparts in Europe and Asia," commented O'Connell. "The confidence of North American investors to bear risk by expanding their holdings of risky assets has hit the lowest level we have recorded to date. This figure has impacted the Global ICI as well, resulting also in the lowest level we have ever seen in that indicator. Asian and European investors have stepped in and compensated somewhat, but the overall impact is still strongly downward."
"There is a strong sell-off of portfolio risk to begin the year among U.S. investors," added Froot. "In addition to cyclical concerns, these investors are also striving hard for diversification, often into new asset classes and investments that previously utilized long positions only. While North American risk taking in equities has slowed steadily over the past three years, the pace of this charge toward diversification may well be accelerating. Recall that the movement by institutional investors toward 'alpha' is also a movement away from 'beta.' "
Since its launch in September of 2003, the State Street Investor Confidence Index(R) has become a key economic indicator for asset owners, investment managers and central banks. As the only index providing a quantitative measure tracking the common buying patterns of institutional investors around the world, the State Street Investor Confidence Index(R) offers a unique look into the investment behavior and decisions of thousands of professional investors and their investment decisions.
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CEO CONFIDENCE IMPROVES, THE CONFERENCE BOARD REPORTS
Chief Executives Predict Moderate Price Increases
Jan. 12, 2006…Chief executives’ confidence, which had declined to 50 in the third quarter, improved to 56 in the final quarter of 2005, The Conference Board reports in its latest survey of CEOs.
The survey includes about 100 business leaders in a wide range of industries. A reading of more than 50 points reflects more positive than negative responses.
“Much of the improvement in confidence can be attributed to the resiliency of the economy post-Katrina and the recent declines in fuel prices,” says Lynn Franco, Director of The Conference Board Consumer Research Center. “Despite the rebound, CEOs were less confident at the close of 2005 than at the start. Looking ahead, they are cautiously optimistic, but not as optimistic about the short-term outlook as they were at the end of 2004. As for their inflation expectations for 2006, they expect modest increases, about 3.4 percent, much the same as they expected for 2005.”
CEOs’ assessment of current conditions improved. Now, close to 44 percent of CEOs claim current economic conditions are better, up from 34 percent in the third quarter. In assessing their own industries, business leaders were also more positive than last quarter. About 39 percent say conditions are better, up from 35 percent in the prior survey.
CEOs are more optimistic about the short-term outlook than they were in the third quarter of 2005. Nearly 41 percent of business leaders expect economic conditions to improve in the next six months, up from 34 percent last quarter. Expectations for their own industries were also more positive, with close to 44 percent anticipating an improvement, up from 38 percent last quarter.
CEOs Expect to Lift Prices Moderately
The majority of chief executives expect to increase their firms’ selling prices in 2006, with 13 percent anticipating price increases in excess of 10 percent. On average, firms plan to hike prices by 3.4 percent, the same as last year. Some 11 percent plan decreases, and 20 percent foresee no change.
Source: CEO Confidence, 4th Quarter: The Conference Board
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Canadian international merchandise trade - November 2005
Canada's merchandise exports fell for the first time in nine months in November as record energy prices cooled off. However, if energy products were excluded, exports would have risen slightly, boosted by increased shipments of automobiles and metal ores.
Exports slipped 2.0% to $39.7 billion from the record high revised level of $40.5 billion in October.
Again, exports of natural gas were the key factor, declining 18.5% to $3.7 billion, which followed four consecutive monthly increases. Natural gas prices and volumes each retreated 10.0%. Much of these declines can be attributed to American natural gas production coming back online in the wake of back-to-back hurricanes in the Gulf Coast.
Canada's merchandise imports, which stood at a record high $32.9 billion in October, remained relatively stable in November, edging down 0.1% to $32.8 billion.
As a result, Canada's trade surplus with the world slipped to $6.9 billion. At the same time, the trade surplus in energy products fell from its all-time high of $6.5 billion in October to $5.3 billion as energy exports declined and imports rose.
Exports to the United States fell back 1.6% from October's record high of $33.3 billion. Imports were down 0.1%. Canada's trade surplus with the United States fell from $11.5 billion in October to $11.0 billion in November.
The deficit with countries other than the United States widened for the third consecutive month, from $3.2 billion in August to a record high $4.1 billion in November.
Exports to countries other than the United States have been strong in 2005, hitting a record high in August of $7.5 billion. However, they have declined in each successive month. Imports from these countries surged in September and have since held steady at a record high $11.1 billion.
Exports: Automotive and metal ore exports post gains
Though energy exports ensured a decline in overall exports in November, gains were recorded in Canada's automotive exports and metal ore exports.
Energy exports as a whole fell 11.1% to $8.4 billion as a decrease in petroleum and coal products accompanied the drop in natural gas. In contrast, crude petroleum gained ground in November, increasing 7.1% to a new high of $2.9 billion.
Despite the drop, the value of energy exports was still the highest among all export sectors in November.
Two other sectors (automobile and machinery) both registered increases to $8.0 billion. For the automotive sector, it was the highest level since $8.1 billion recorded in June 2004. Though reports of restructuring have led to headlines questioning the strength of the Canadian auto industry, automotive exports have been robust in past months, recording their seventh successive increase in November.
Passenger auto exports, which led this climb, jumped 5.9%. Auto sales in the United States have also been robust in recent months, with many of the models that are in high demand being produced in Ontario.
Metal ore exports jumped 19.5%, with shipments of iron ore, copper ore, and nickel ore leading the way. As well, exports of primary iron and steel posted gains, reaching a record high of $67.5 million.
British Columbia's exports from January to November 2005 have surpassed the total 2004 value for the province, with rising metal ore exports being a contributing factor. The main reason for British Columbia's growth in 2005 has been soaring energy prices. Other energy-exporting provinces, such as New Brunswick, Saskatchewan and Alberta, have also surpassed their 2004 totals.
For the first time in eight months, exports of live animals failed to register a gain, dropping 11.0% to $191.1 million. Live cattle exports had been pushing up live animal exports since the lifting of the US ban on cattle under the age of 30 months in July, but shipments fell back slightly in November.
Japan announced in December that it will re-open its border to Canadian beef following a two-year ban. In 2002, the year before the ban was imposed, the Canadian beef industry exported $52.7 million worth of beef to Japan, an average of $4.4 million a month.
Japan was at that time the third largest destination for Canadian beef, next to the United States and Mexico. In 2002, total beef exports were slightly more than $2.0 billion.
Imports: Energy products and consumer goods on the rise
Rising imports of energy products and consumer goods were offset by widespread declines in automotive products and industrial goods and materials.
Energy products experienced the largest gain in November as imports jumped 5.1% to a record high $3.1 billion. Petroleum and coal products, specifically fuel for aircraft, were the driving force behind the increase, rising to a historic high of $828.9 million.
Imports of other consumer goods increased to a record high of $4.3 billion in November. Import levels for other consumer goods, which include products such as consumer electronics, sports equipment and toys, printed matter, and apparel and footwear, have been very strong throughout 2005, with monthly values all above $4.0 billion for the first year ever.
Prices for these goods have been falling, particularly as a result of the appreciating dollar. Constant dollar imports of consumer goods have jumped from $41.0 billion in 2002 to $44.6 billion in 2003 to $48.4 billion in 2004. With one month left in 2005, constant dollar imports are standing at $47.7 billion.
Imports of machinery and equipment edged down in November to $9.4 billion. However, these imports during 2005 climbed from $8.8 billion in January to $9.4 billion in June and have hovered between $9.3 billion and $9.5 billion in the months following.
Imports of motor vehicle parts dropped 4.5%. Imports in two sub-groups fell for the second month in a row, with declines of 4.1% for passenger autos and chassis and 2.3% for trucks and other motor vehicles.
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Survey Reveals Managers' Most Embarrassing Moments at Work
TORONTO - Sitting in a dunk tank may be business as usual for a circus performer, but how about a corporate executive? Strange but true, some managers have made a splash - literally - in front of colleagues. In fact, in a recent survey, sitting in dunk tanks, performing in office skits and falling prey to clothing calamities were among survey respondents' most embarrassing moments at work.
The survey was developed by OfficeTeam, a leading staffing service specializing in the placement of highly skilled administrative professionals. It was conducted by an independent research firm and includes responses from 150 senior executives at Fortune 1000 companies.
Executives were asked, "What was your most embarrassing moment at work?"
Here are some of their responses:
- "I inadvertently sent a personal e-mail to an entire distributionlist."
- "Another manager and I had a conflict in front of the president of thecompany."
- "A personal voice mail from my spouse went to someone else instead."
- "I pretended to throw water on a colleague only to discover my cupwasn't empty. Luckily, she had a good sense of humour."
"No professional is immune to the occasional work mishap," said DianeDomeyer, executive director of OfficeTeam. "Acknowledging an awkward situation, apologizing to the appropriate colleague, if necessary, and not dwelling on it are good ways to bounce back from even the most uncomfortable scenario."
Think performances are limited to the stage or screen? Consider the following: - "For Employee Appreciation Week, executives perform a skit and I played Cher."
- "I sat in a dunk tank and was in my swimming trunks in front of employees."
- "My colleagues pressured me to sing my school song the day I started."
- "The marketing team did karaoke. We sang 'Bohemian Rhapsody.'" Hopefully, these executives rebounded from these memory lapses: - "Calling the CEO by the wrong name"
- "Leaving the boss behind and going to a meeting without him"
- "Showing up for work on a Sunday thinking it was Monday" Ever wonder what it would be like working with the Three Stooges? Here are a few possible scenarios:
- "I stumbled and fell on my face when I tripped over the carpet."
- "In a meeting, I spilled coffee all over myself."
- "While speaking at a business event, I fell off the stage." Controlling their emotions and staying focused at work challenged these respondents:
- "I hugged the senior manager on my first day of work."
- "While interviewing a job candidate, I fell asleep."
- "I passed out in the front lobby after I cut my finger." And these wardrobe malfunctions are sure to raise some eyebrows at the office:
- "Making a presentation with my zipper open"
- "Coming into work with two different shoes on"
- "Leaving the gym one morning only to discover I had left my business clothes at home"
- "Showing up at work wearing a grey jacket and blue pants"
"Everyone has embarrassing incidents at work - it shows we're all human," added Domeyer. "The best way to handle awkward moments is to gracefully move on, and, if possible, try to find the humour in the situation." |
Survey Suggests Office Ambiance Influences On-the-Job Innovation
TORONTO - Mood lighting may influence more than one's romantic mindset; it can impact an employee's creative quotient as well, a new survey suggests. More than half (55 per cent) of advertising and marketing executives polled said office environments - including layout, décor and lighting - greatly affect on-the-job innovation. Another 38 per cent of respondents reported one's workplace impacts staff creativity at least somewhat. The survey was developed by The Creative Group, a specialized staffing service that provides marketing, advertising, creative and web professionals on a project basis. It was conducted by an independent research firm and includes 250 responses - 125 from advertising executives with advertising agencies and 125 from senior marketing executives. Advertising and marketing executives were asked, "In your opinion, to what extent, if any, does a company's office environment, including layout, décor and lighting, affect creative output?" Their responses:
Greatly......................................................... 55%
Somewhat........................................................ 38%
Not very much................................................... 5%
Not at all...................................................... 2%
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100%
"Physical surroundings can heavily influence an employee's ability to concentrate and perform well," said Tracey Fuller, executive director of The Creative Group. "Companies can encourage productivity and innovation by providing staff members with comfortable, attractive areas for team meetings, as well as individual work stations that can be tailored to personal needs and preferences." The Creative Group offered the following tips for developing a productive and stimulating office environment:
- Construct "creativity" zones. Designate a few office areas where informal meetings or spontaneous brainstorming sessions can occur. Equip each room with industry publications and a white board to jot down ideas.
- Offer private sanctuaries. While open floor plans can increase collaboration and communication among employees, some projects require greater concentration and solitude. Provide stations where employees can work without distraction. These spaces also can be used for teleconferences.
- Let there be light. Maximize opportunities to benefit from natural daylight; position desks near windows so workers can have external views. In locations where this is not possible, ensure sufficient ambient and task lighting are in place.
- Install an idea wall. Transform the walls of a communal area - the lounge or cafeteria, for example - into a blank canvas for spontaneous scribbling. Cover flat surfaces and tabletops with colourful paper and keep a jar of markers close by for people to post ideas.
- Venture into the unknown. Hold staff or team meetings in unusual places - a nearby courtyard, park or café, for example. A change of scenery is sometimes all it takes to spark the imagination.
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Men want facts, women seek relations on Web - survey
By Eric Auchard
SAN FRANCISCO Reuters - Internet users share many common interests, but men are heavier consumers of news, stocks, sports and pornography while more women look for health and religious guidance, a broad survey of U.S. Web usage has found.
The study by the Pew Internet & American Life Project to be released on Thursday finds men are slightly more intense users of the Web. Men log on more frequently and spend more time online. More men also have access to quick broadband connections than do women.
"Once you get past the commonalities, men tend to be attracted to online activities that are far more action-oriented, while women tend to value things involving relationships or human connections," said Deborah Fallows, a research fellow at Pew and author of the report.
A larger number of men surf the Internet for pleasure, with 70 percent acknowledging they go online to pass time, compared with 63 percent of women. Men are more likely than women to listen to music, view Webcams and pay for digital content.
But women are catching up in several areas measured by the survey, and intensive use by younger women suggests some of the gaps will continue to narrow.
Already, women are heavier users of e-mail, often going beyond the matter-of-fact responses of male correspondents to use e-mail to share stories, solve issues and reach out to a wider network of friends and family.
Both genders look to the Web as a font of information and as an efficient communications tool, said Fallows in an interview.
Overall, the percentage of men and women who use the Web are nearly equal. Roughly 68 percent of men and 66 percent of women report making use of the Web, up from 20 percent of the U.S. population Pew found in 1995, when men made up 58 percent of the online audience.
WEB RISKS, JARGON PUT WOMEN OFF
Over the past decade, men have proved more willing to engage in riskier encounters or transactions, such as joining chat rooms, bidding in online auctions or trading stocks. Auctions attract 30 percent of men versus 18 percent of women.
In addition, 21 percent of males confess to looking at porn online compared with just 5 percent of females, the Pew survey has found. This area is notoriously difficult to measure and may be underreported by survey respondents, Fallows said.
Meanwhile, 74 percent of women seek health or medical information online, far more than the 58 percent of men who do so. Thirty-four percent of women seek religious information from the Web versus 25 percent of men. Such differences mirror gender differences in the offline world, Fallows noted.
Men go online more frequently, as 44 percent use the Web several times daily versus 39 percent of women.
Partly this reflects their greater broadband access, requiring less time to wait for dial-up connections. Seventy-eight percent of men have broadband connections at work versus 69 percent of women, although the broadband gender gap narrows among both sexes at home.
In addition, the survey found men feel more in control of their computers. Far more men fix their own computers, for instance. Men also are more likely to be aware of the latest technology jargon -- terms like spam, firewall, spyware, adware, phishing and RSS.
GENDER GAP, OR GENERATION GAP?
Based on responses by thousands of U.S. Web users to a questionnaire covering 90 areas of online activity, the Pew report finds some of the gender differences to be generational. Girls and young women are more facile with technology-intensive activities than older generations of women appear to be.
Eighty-six percent of women ages 18-29 are Web users, compared with 80 percent of men. But 34 percent of men 65 and older use the Internet, compared with 21 percent of elderly women.
By 2004, 22 percent of teenage girls had started a blog, or online journal, versus 17 percent of boys. Yet boys are far more likely to download music or videos, with 38 percent of boys saying they watch online video versus 24 percent of girls.
"Teenage girls may do more or less than boys of certain activities, like downloading, but the important message is that the technology is not standing in their way," the report states. As younger women grow up, women are likely to overtake men in terms of the overall audience, Fallows predicts.
The report cites data from surveys performed by Pew from 2000 through 2005. Some 6,403 respondents took part in 2005.
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Looking for Employees in All the Right Places
by Linda Barrington and June Shelp
Executiveaction series No. 173 December 2005
The buzz m | |
