Ireland's predicted economic downturn will most likely be reflected in employer hiring expectations as Ireland has the weakest global employment outlook for 2008, a study has revealed.

The latest Employment Outlook Survey, which is conducted quarterly by Manpower Recruitment and measures employers hiring intentions for the coming quarter, shows that Ireland will fare poorly with just one in 12 companies expected to hire new workers, compared to one in four for the corresponding period last year.

The overall figure for employment outlook of 4 per cent is down a significant 17 per cent on the figure for the same period last year.

The report also highlighted that in the past year, employment outlook has undergone a continuous decline from 21 per cent in the first quarter of 2007 to the current figure of 4 per cent.

Specifically, it found that employers operating in the Leinster region had the weakest hiring intentions with an overall decrease of 13 per cent on the last quarter.

The figure gives the region the lowest employment outlook recorded since 2006.

The extensive survey, which involved an interview with 681 employers across the State, found that only 8 per cent of Irish employers nationwide say they expect to hire more people during the first quarter of the coming year. This figure represented an 8 per cent decrease on the corresponding quarter last year.

While employers are reporting more conservative hiring plans for the coming three months, the outlook for the economy as a whole is still positive as job security will remain largely unaffected.

According to the research, only 4 per cent of Irish employers expect to reduce their workforce while a reassuring 87 per cent anticipate no change for the coming quarter.

"The results highlighted are very disappointing across many industries. In the past three months there have been very unfortunate job losses throughout the country and this certainly has affected the mindset of Irish employers, making them ever more cautious for the coming year," said Jason Kennedy, managing director of Manpower Ireland.

Regionally, employment is expected to be strongest in Dublin and Ulster, both of which recorded an outlook of 8 per cent. Employers in Munster and Connaught were less optimistic about their employment prospects, recording a decrease in their hiring expectations of five and 18 per cent respectively.

Ulster was the only region where employers indicated a slight increase in their intention to hire.

"While many people may be uncertain as to what lies ahead for the Irish economy, employers in Ireland are not panicking, but rather, they are keeping a watchful eye on conditions and adjusting according to their business needs in the short term," Kennedy explained.

Although the majority of employers indicated conservative recruitment plans, there is some reassurance for employment prospects as 10 out of 11 industry sectors reported positive hiring expectations in the coming quarter.

The least optimistic job prospects for the coming quarter were reported by employers in the construction industry, which is in no doubt driven by a slowing property market.Employers in the industry predicted an employment outlook decline of 1 per cent, compared with a substantial 23 per cent three months ago.

Yet with employers in 10 out of 11 industries indicating plans to hire, it is hoped that this will stimulate the loss of labour in the construction industry.

While employers in wholesale, retail and trade sectors reported minimal increases of 2 per cent in their hiring expectations, those in the financial sector are anticipating conservative hiring plans, recording a dramatic decrease in its employment outlook of 28 per cent since the first quarter of 2007.

The pharmaceutical industry had the most positive outlook for the New Year, revealing an increase in hiring expectations of 8 per cent.

Yet the strongest hiring expectations for the beginning of 2008 are expected in the transport and communication sectors, which both recorded a 4 per cent rise in hiring activity.

The survey was also conducted in 28 countries and found that for many economies, hiring trends for the coming quarter largely mirrored that of Irish trends.

In Europe, Austria, Italy and France had also undergone a drop in confidence, all predicting an outlook of 4 per cent.

Elsewhere, employers in Hong Kong and South America anticipated substantial increases in their workforces.