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Hiring Pace to Remain the Same, According to CareerBuilder.com´s and USA TODAY´s Q2 2008 Job Forecast

Published: 6/1/2008

CareerBuilder.com, the nation´s largest online job site, and USA TODAY released the results of their latest survey, conducted by Harris Interactive®, tracking projected hiring trends for the upcoming quarter.  The survey, titled "Q2 2008 Job Forecast," was conducted from February 11 through March 13, 2008 among 2,757 hiring managers and human resource professionals in private sector companies.

"The job loss reported in the first quarter signified a gradual
deceleration in recruitment in the U.S. as the nation´s economy downshifted," said MattFerguson, CEO of CareerBuilder.com.  "In the next three months, employers anticipate marginal change in their hiring pace.  While some industries are experiencing a contraction in employment levels, areas such as information technology, healthcare, professional and business services and sales continue to add full-time jobs."

Hiring in Q1 2008
Thirty-one percent of employers said they increased their number of
full-time, permanent employees from January through March while 57 percent reported no change and 11 percent reported a reduction in headcount. One percent was unsure.

When asked if hours had changed, on average, for hourly workers in Q1
year over year, 59 percent reported no change in the number of hours
offered.  Eleven percent reported hours were increased while 12 percent said hours were cut and 5 percent were unsure. 

Hiring in Q2 2008
Looking ahead, 29 percent of employers plan to grow their number of
full-time, permanent employees from April through June while 59 percent
anticipate no change and 6 percent expect to decrease headcount.  Six
percent are unsure. 

Hiring By Region
The Midwest continues to trail behind the other regions when it comes
to adding new hires.  Twenty-five percent of employers in the Midwest
expect to increase their number of full-time, permanent employees in the
second quarter compared to 31 percent in the West and Northeast and 30 percent in the South.  Eight percent of employers in the Northeast plan to reduce staff levels, followed by 7 percent in the South, 6 percent in the Midwest and 5 percent in the West.  

Hiring By Industry
Certain industries and functions continue to outpace other areas in
terms of producing new jobs.  Forty-five percent of IT employers expect to add full-time, permanent employees in the second quarter followed by 36 percent in sales, 32 percent in Professional and Business Services and 30 percent in large healthcare organizations. 

Hiring By Company Size
Thirty-three percent of employers with more than 250 employees expect
to add full-time, permanent positions in the next three months compared to 32 percent of those with 51 to 250 employees and 22 percent of those with 1 to 50 employees. 

Layoffs
Eleven percent of hiring managers reported there were layoffs at their
locations in the first quarter.  Seven percent anticipate there will be
layoffs in the next three months.  Eighty-three percent expect no change while 10 percent are unsure.

Compensation in Q2 2008
The shortage of skilled labor has motivated more competitive
compensation packages.  Seventy percent of employers anticipate providing an increase in salaries for full-time, permanent employees in the second quarter.  Forty-one percent estimate the average raise to range between 1 and 3 percent, 27 percent expect an average raise of 4 to 10 percent while 2 percent expect salaises to be 11 percent or more.  Twenty-four of employers anticipate no change in compensation levels, 2 percent expect a decrease and 5 percent are unsure. 

Job Changes
Thirty-eight percent of employers report they currently have positions
for which they can´t find qualified candidates.  Although the job market
has softened, opportunities are still available, and workers are
responding.  Twenty-one percent of workers expect to change jobs in the next 12 months; one-in-ten plan to do so within the next six months.  

Survey Methodology
This survey was conducted online within the U.S. by Harris Interactive
on behalf of CareerBuilder.com among 2,757 hiring managers and human
resource professionals (employed full-time; not self-employed; with at
least significant involvement in hiring decisions); and 6,897 U.S. employees (employed full-time; not self-employed) ages 18 and over between February 11, and March 13, 2008, respectively (percentages for some questions are based on a subset U.S. employers, based on their responses to certain questions). With a pure probability sample of 2,757 and 6,897, one could say with a 95 percent probability that the overall results have a sampling error of +/- 1.9 percentage points and +/- 1.2 percentage points, respectively. Sampling error for data from sub-samples is higher and varies. A full methodology is available upon request.

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