Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Hiring to Remain Stable Over Next 3 Months
CHICAGO -- Stable hiring is expected for the second quarter as U.S. employers continue to size up a market that is producing moderate economic growth. Some 26% of employers plan to increase full-time, permanent headcount in the next three months, similar to projections for the previous two quarters, but trending below second-quarter estimates last year.
"The U.S. job market is in a better place today, but concerns over spending cuts, wavering global economies and other factors are weighing on employers' minds," said Matt Ferguson, CEO of CareerBuilder, which issued the forecast. "We expect continued stability and improvement as the year goes on. When we look at listings on CareerBuilder.com, job growth isn't confined to technology and healthcare and other areas that have fared well post-recession. The rebound in the housing sector is having a positive influence on job creation for related industries that have been struggling."
In a previous survey completed in November, 26% of employers planned to hire full-time, permanent employees in the first quarter of 2013. The number of employers who actually hired full-time, permanent staff was 28% -- down from 33% last year -- reflecting a cautious environment in the wake of slower-than-expected economic growth in the fourth quarter of 2012.
Just 12% of employers decreased headcount, up from 9% last year, and 59% said there was no change in their number of full-time, permanent employees while 2% were unsure.
Looking ahead, 26% of employers plan to add full-time, permanent staff in the second quarter, down from 30% last year. Given that employers historically have been more conservative in estimates than hiring activity, the number may come in higher at quarter's end.
Just 9% expect to downsize staff, up from 6% last year, while 60% anticipate no change and 5% are undecided.
Temporary labor continues to be an important part of the employment mix, though employer estimates for hiring over the next three months are slightly lower than last year's. Some 32% of employers plan to hire contract or temporary workers in the second quarter, down from 34% in 2012. Nearly one in four one-in-four are planning to transition some contract or temporary staff into permanent employees in the second quarter, the same as last year.
Hiring in companies of all sizes -- while trending below the second quarter of 2012 -- will continue at a steady pace into the middle of the year, as follows:
- 50 or fewer employees: 17% plan to add full-time, permanent staff in the second quarter, down from 20% last year; those reducing headcount increased to 6% this year from 5% last year.
- 250 or fewer employees: 21% plan to add full-time, permanent staff, down from 22% last year; those reducing headcount increased to 7% in 2013 from 5% last year.
- 500 or fewer employees: 22% plan to add full-time, permanent staff, down from 25% last year; those reducing headcount increased to 8% this year from 5% last year.
- More than 500 employees: 33% plan to add full-time, permanent staff, down from 38% last year; those reducing headcount increased to 10% in 2013 from 7% last year.
When it comes to compensation, 33% of employers anticipate no change in salary levels in the second quarter compared to the same period last year. Meanwhile, 41% expect there will be an increase of 3% or less, 16% expect their average changes will be between 4% and 10% and 2% of employers predict an increase of 11% or more. Another 3% anticipate a decrease in salaries and 5% say their company is undecided.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.