A Sunny Forecast for Second Quarter Job Growth

The U.S. added private sector jobs every month over the last six years and a recent Harris Poll survey conducted for CareerBuilder suggests this trend will continue in the second quarter of 2016. 

Of the 2,186 hiring and human resource managers surveyed for the poll, 34 percent plan to add full-time, permanent employees over the next three months, and 37 percent plan to hire temporary or contract workers. 

“Overall, U.S. job growth has been consistent despite volatility in the stock market and weaker performances in global economies,” says Matt Ferguson, CEO of CareerBuilder. “The vast majority of companies are either maintaining their headcount or adding new employees at various skill levels. This is promising news for college students approaching graduation and seasoned workers who want to re-enter the workforce or change jobs.”

Permanent Hiring in Q1 2016

During this first quarter of 2016, 37 percent of employers hired full-time, permanent employees, up from 35 percent last year. The number of employers that decreased their workforce was on par with last year at 9 percent, while 53 percent reported no change in employment.

Permanent Hiring in Q2 2016

Looking ahead, 34 percent of employers plan to add full-time, permanent staff in the second quarter, up from 32 percent last year. Seven percent expect to decrease staff, down one point from last year, 55 percent of employers anticipate no change,and 5 percent are undecided.

Industries expected to match or exceed the national average for adding full-time, permanent jobs in the second quarter are:

• Health Care (50 or more employees) – 44 percent
• Financial Services – 42 percent
• Leisure & Hospitality – 41 percent
• Information Technology – 40 percent

Temporary Hiring

Temporary employment continues to be a popular option, with 37 percent of employers planning to hire temporary or contract workers in the second quarter, similar to last year’s numbers. 33 percent plan to transition some contract or temporary staff into permanent employees in the second quarter, up from 31 percent last year.   

Hiring by Company Size

While large organizations are adding staff at a faster rate, the increased confidence small- and medium-sized businesses have displayed in previous quarters is expected to carry over into Q2:

• 50 or fewer employees – 24 percent plan to increase the number of full-time, permanent staff in Q2, up from 23 percent last year; those reducing headcount remained at 4 percent.
• 250 or fewer employees – 29 percent plan to increase the number of full-time, permanent staff in Q2, up from 27 percent last year; those reducing headcount remained at 6 percent.
• More than 500 employees – 41 percent plan to increase the number of full-time, permanent staff in Q2, up from 38 percent last year; those reducing headcount decreased one point from last year to 8 percent. 

Compensation

Companies might be feeling increased pressure to become more competitive with compensation as 25 percent expect to boost salaries by at least 5 percent, while 44 percent anticipate there will be an increase of 4 percent or less.