According to a recent survey by CareerBuilder, U.S. employers are holding off on staff expansions and focusing efforts on keeping current headcount.
The survey, titled “Q2 2009 Job Forecast,” was conducted from February 20 through March 11, 2009 among 2,500 hiring managers and human resource professionals and over 4,400 workers in private sector companies.
Some noteworthy points:
Thirteen percent of employers said they increased their number of full-time, permanent employees in the first quarter – down from 31 percent this time last year – while 60 percent reported their staff levels remained the same. Twenty-six percent reported a reduction in headcount, up from 13 percent this time last year. One percent were undecided.
Fourteen percent of employers expect to add full-time, permanent employees in the second quarter, relatively unchanged from the first quarter of 2009 and down from 29 percent in the second quarter of 2008. Fourteen percent anticipate there will be a decrease in headcount in the second quarter while 64 percent expect no change and 7 percent are undecided.
Twenty-two percent of hiring managers reported there were layoffs at their locations in the first quarter of 2009, up from 11 percent this time last year. Twelve percent anticipate there will be layoffs in the next three months while 16 percent are unsure. Seventy-two percent expect no change.
Looking at a subset of managers specializing in human resources, nearly half (48 percent) believe their organizations will benefit from the economic stimulus in terms of getting more business. Twenty-three percent said their companies are planning to bring back workers who were laid off once the economy turns around.
“We’ll be looking for the market to stabilize over the next three to six months, when you’ll hopefully see job losses below 100,000 and eventually closer to zero,” said Matt Ferguson, CEO of CareerBuilder.com. “Employers want to hold on to their talent and are taking measures to contain costs and bring in new revenue streams, so they can maintain their staff levels. Sixty-four percent of employers expect there will be no change in their number of full-time, permanent employees in the second quarter.”
The survey also uncovered six employment trends for employers and job seekers:
No. 1 – Trimming Perks and Benefits – Companies are taking interim measures to free up funds to weather the economic storm. Forty-two percent of employers reported they experienced a cut in perks and benefits at their organizations in the first quarter of 2009; 31 percent expect there will be cuts in the second quarter of 2009. The top three areas that will be impacted are bonuses, 401K matching and healthcare coverage, according to the survey.
No. 2 – Upgrading Talent Rosters – Twenty-three percent of employers said they are taking this time, when hiring has slowed, to replace lower-performing employees with top talent that may not have been available in a healthier economy. Job seekers who stand to benefit the most include those operating in sales, accounting/finance, retail and customer service.
No. 3 – Postponing Retirement – Six-in-ten workers (60 percent) over the age of 60 said, in a separate survey, they are putting off their retirement due to the impact of the U.S. financial crisis on their long-term savings. The majority (73 percent) anticipate it will take them up to six years to recoup lost savings while one-in-ten fear they may never be able to retire.
No. 4 – Transferring Skills – Seventy-one percent of workers who were laid off and have not found work said they are looking for jobs outside of their chosen profession either because they’re ready for a change or there are no available jobs in their field. Hiring managers are amenable with 69 percent stating they would hire someone who didn’t have experience in their profession, but had transferable skills.
No. 5 – Relocating – Thirty-nine percent of workers who were laid off and have not found work said they would consider relocating to another city or state for a job. Employers are open to recruiting candidates from other cities with 28 percent of hiring managers stating they would pay to relocate a good job candidate.
No. 6 – Going Back to the Classroom – Twenty-one percent of all workers surveyed are going back to school for formal degrees, certifications and refresher courses to make themselves more marketable to employers.
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