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US hiring outlook dips, Asia strong

NEW YORK (Reuters) - US employers are slightly less willing to hire workers in the coming quarter than they were three months ago, even as hiring intentions improved in most other countries and territories, especially in Asia, according to a quarterly survey by Manpower Inc.

Its US survey renewed questions about the pace and sustainability of a forecasted US jobs recovery, and whether eventual jobs creation will make much of a dent in the ranks of unemployed, which now number some 17 million Americans.

The global employment services company said its seasonally adjusted US net employment outlook was plus-5 for the second quarter, down slightly from plus-six in the previous survey. It stood at minus-two in the second quarter of 2009.

The index, based on interviews with 18,000 US hiring managers, measures the difference between those who say they will add to their workforce and those who plan cuts. Nearly three-quarters, or 73 percent, reported no change in their hiring outlook, matching last quarter's record.

"There is some demand, so (employers) won't let people go, but not enough confidence to do hiring," Manpower chief executive Jeff Joerres said.

The US labour market is struggling to break a vicious cycle, he said. Employers will not add capacity until they see more demand for their products or services - demand that depends largely on the US consumer. But the consumer is not willing to boost spending until the unemployment rate retreats from its current 9.7 percent.

Such a "Catch-22" raises the prospect of slower economic growth with persistent unemployment, which could make the US less globally competitive. It also argues for continued government stimulus in the economy, Joerres said.