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Temp hiring plans edge down for second half, survey says

July 07, 2016

A survey of hiring managers and human resource professionals found 32% plan to hire temporary or contract staff in the second half of 2016, down slightly from the 34% who said the same in a separate survey for the second half of last year, according to CareerBuilder’s new mid-year 2016 US job forecast.

CareerBuilder’s survey for the second half of this year also found 50% of employers plan to add full-time, permanent headcount, on par with 49% in last year’s mid-year survey. And 29% plan to add part-time employees, similar to 28% in last year’s survey.

“Based on our study, the US job market is not likely to experience any major dips or spikes in hiring over the next six months compared to last year,” said CareerBuilder CEO Matt Ferguson. “While certain industries or locations may produce more job growth, hiring overall will hold steady throughout the election season and through the end of the year.”

 A more noteworthy change will be seen in the area of wages.

“The number of hires made each month continues to lag the number of jobs posted for key functions within organizations, and the majority of employers feel they will now have to pay workers more to attract and retain them because the talent supply is not keeping up with demand,” Ferguson said.

Looking at a subset of human resources managers, the report found 70% feel their companies will have to start paying workers higher wages because the market has become increasingly competitive for the talent needed.

Among hiring managers and human resources managers surveyed, 39% plan to offer higher starting salaries for new employees over the next six months; 20% of all employers plan to increase starting salaries on job offers by 5% or more. More than half of employers, 53%, plan to increase compensation levels for current employees before year end and, similar to salaries on new job offers, 21% said the compensation increase for existing staff will likely be 5% or more.

Led by IT and healthcare staffing, the following industries are expected to outperform the national average for full-time, permanent hiring in the second half of 2016:

  • Information technology: 68%
  • Healthcare: 65%
  • Financial services: 56%
  • Manufacturing: 51%

Broader functional areas employers will be hiring for include:

  • Customer service: 29%
  • Sales: 27%
  • Information technology: 25%
  • Production: 20%
  • Accounting/finance: 13%
  • Human resources: 13%
  • Clinical: 12%
  • Business development: 11%
  • Marketing: 11%
  • Research and development: 11%

The survey was conducted online within the US by Harris Interactive on behalf of CareerBuilder among 2,153 hiring managers and human resources managers and 3,244 US employees. The survey was conducted between May 11 and June 7, 2016.