Job Forecast Finds Employers Expect

Uptick in Hiring In 2010

CHICAGO — The encouraging news regarding the economy may be easing hiring fears, as employers signal an increase in their plans to hire in the new year, according to CareerBuilder’s 2010 Job Forecast.

While employers continue to closely monitor the progress of recovery for the US economy, they are beginning to consider hiring strategies designed to preserve the health and growth of their businesses for the future. CareerBuilder surveyed more than 2,700 hiring managers and human resource professionals nationwide across industries.

“There have been many signs over the past few months that point to the healing of the US economy, especially the continued decrease in the number of jobs lost per month, a trend that will hopefully carry over into the new year,” said Matt Ferguson, CEO of CareerBuilder. “Although 20 percent of employers plan to add headcount in 2010, up from 14 percent last year, they still remain cautious in regard to their hiring. We’re headed in the right direction, but should not expect to see actual job growth until at least Q2 2010.”

According to the survey, employers in the West are planning to increase their headcounts more in 2010 than the other regions of the country. Nearly one-quarter of employers (24 percent) in the West say they plan to add full-time workers in 2010, compared to 21 percent in the Northeast, 20 percent in the South, and 16 percent in the Midwest.

While plans to decrease headcounts in 2010 are down sharply across all regions, employers in the Northeast still plan to trim headcounts by ten percent, followed by an eight percent decrease in the South, Midwest, and West.

Comparing selected industries, hiring is expected to increase in information technology, manufacturing, financial services, professional and business services, and sales in the coming year.

Thirty-two percent of IT, 27 percent of manufacturing, and 23 percent of financial services employers plan to add full-time, permanent employees in 2010, followed by 22 percent of employers in professional and business services and 21 percent in sales. Health care employers are also planning to expand staffs at 21 percent, followed by 18 percent of transportation employers and 15 percent of retail.

Even as companies continue to watch their spending, they still plan slight increases to salaries in the coming year. Fifty-seven percent of employers report their companies will increase salaries for existing employees in 2010, down from 65 percent in 2009. Thirty-six percent expect to raise salaries of existing employees by three percent or more, while 11 percent anticipate increases of five percent or more.