Some 38% of local employers expect to add personnel this spring, 17% foresee labor cutbacks and 45% will stick with current payrolls, according to the temporary help firm. That's less bullish than a year ago, when 56% stated they would upgrade staffing levels and only 6% expected to have fewer workers on the job.

It also compares to a booming labor market three months ago, when 71% expected to add workers and 11% planned staff reductions.

"It appears that employers in San Diego were overly optimistic three months ago,'' says Phil Blair, president and co-owner of Manpower Temporary Services of San Diego. "They have since moderated their projections. Local employers, however, are still confident because San Diego is outpacing the rest of the nation."In the second quarter, construction, durable and non-durable goods manufacturing, finance/sales/real estate and public administration all expect to add workers. Staff reductions are in store for wholesale/retail trade and education. The outlook is mixed in transportation/public utilities and services.