23% of Employers Plan to Hire Additional Workers in Q2

Stable hiring is expected for the second quarter as U.S. employers continue to size up a market that is producing moderate economic growth, according to CareerBuilder’s latest job forecast. Twenty-six percent 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 Q2 estimates last year.

The national survey, which was conducted online by Harris Interactive^© from February 11 to March 6, 2013, included more than 2,000 hiring managers and human resource professionals across industries and company sizes.

“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. “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.”

Hiring in Q1 2013

In a previous survey completed in November 2012, 26 percent 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 percent – down from 33 percent last year – reflecting a cautious environment in the wake of slower-than-expected economic growth in Q4 2012.

Twelve percent of employers decreased headcount, up from 9 percent last year. Fifty-nine percent said there was no change in their number of full-time, permanent employees while two percent were unsure.

Hiring in Q2 2013

Looking ahead, 26 percent of employers plan to add full-time, permanent staff in the second quarter, down from 30 percent 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.

Nine percent expect to downsize staff, up from 6 percent last year. Sixty percent anticipate no change while 5 percent are undecided.

Temporary Hiring

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. Thirty-two percent of employers plan to hire contract or temporary workers in the second quarter, down from 34 percent last year. Nearly one-in-four (24 percent) are planning to transition some contract or temporary staff into permanent employees in the second quarter, the same as last year.

Hiring By Company Size

Hiring in companies of all sizes – while trending below Q2 2012 – will continue at a steady pace into the middle of the year.

• 50 or fewer employees – 17 percent plan to add full-time, permanent staff in Q2, down from 20 percent last year; those reducing headcount increased to 6 percent in 2013 from 5 percent last year.
• 250 or fewer employees – 21 percent plan to add full-time, permanent staff in Q2, down from 22 percent last year; those reducing headcount increased to 7 percent in 2013 from 5 percent last year.
• 500 or fewer employees – 22 percent plan to add full-time, permanent staff in Q2, down from 25 percent last year; those reducing headcount increased to 8 percent in 2013 from 5 percent last year.
• More than 500 employees – 33 percent plan to add full-time, permanent staff in Q2, down from 38 percent last year; those reducing headcount increased to 10 percent in 2013 from 7 percent last year.

Compensation

Thirty-three percent of employers anticipate no change in salary levels in the second quarter compared to the same period last year. Forty-one percent expect there will be an increase of 3 percent or less. Sixteen percent expect their average changes will be between 4 and 10 percent and 2 percent of employers predict an increase of 11 percent or more. Three percent anticipate a decrease in salaries and 5 percent of employers say their company is undecided.

Totals may not equal 100 percent due to rounding.