THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, November 28, 1995             TAG: 9511280338
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER 
                                             LENGTH: Medium:   55 lines

HAMPTON ROADS NOT EXPECTED TO KEEP UP WITH SOUTH'S ECONOMY

Although the South is forecast to outperform the nation's economy, Hampton Roads may be destined to remain stuck in the middle of the pack.

Economic uncertainty, expected to continue into the new year, will prevent most employers from hiring new workers, according to a survey released Monday by Manpower Inc., the world's largest temporary employment firm.

Sixty-four percent of the companies interviewed for Manpower's Employment Outlook Survey said they will maintain current staffing levels through the first quarter of 1996.

Only 20 percent of the 15,000 companies interviewed said they will add to to their employment rolls.

That's down compared with the first quarter of 1995 when 22 percent expected to hire additional workers and 63 percent anticipated no change in employment levels.

Regionally, the South is expected to show strong hiring activity in various industries, especially nondurable manufacturing and construction.

But Hampton Roads is not representative of the South, said William F. Mezger, senior economist at the Virginia Employment Commission, which tracks employment for the state.

``Hampton Roads is a little bit different from the rest of the South in that Hampton Roads, manufacturing employment is largely in durables (goods),'' Mezger said, referring to the shipyards and the Ford Co. truck assembly plant.

He pointed out that Virginia's economy grew about 3 percent in 1994 and is expected to grow just below 3 percent this year. Virginia is still ahead of the national average.

Hampton Roads, , which has been growing at about 2 percent, has not kept pace with the state, he said.

Forecasts for the South predict stronger employment in the apparel and textile industries, traditionally the region's dominant industries.

Since Hampton Roads and other parts of Virginia don't have those types of industries, Manpower's survey predictions may not apply, Mezger said.

``I think Hampton Roads will probably continue to grow but probably just below the state level,'' which is slowing, he said.

Services, trade and construction should remain strong in Hampton Roads, Mezger said.

Commercial construction in the region, for example, is up 31 percent for the first nine months of the year compared with the same period in 1994, said Bob Lyons of the Builders and Contractors Exchange Inc.

``Year to year, commercial (construction) is up significantly,'' Lyons said. ``It's been holding up the entire equation.''

KEYWORDS: ECONOMY VIRGINIA HAMPTON ROADS by CNB