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Forecast finds 33% of US employers to hire temps in Q2

April 03, 2014

A survey of hiring managers and human resource professionals found that 33 percent plan to hire temporary or contract staff in the second quarter, relatively unchanged from the 32 percent who said they planned to hire temporary and contract staff in the same quarter of last year, according to CareerBuilder’s second-quarter 2014 U.S. job forecast released today. Additionally, 26 percent reported that they will transition some temporary or contract staff into permanent employees in the quarter, up from 24 percent in last year’s second quarter.

The survey also found that 26 percent of employers plan to add full-time, permanent headcount in the second quarter, on par with last year.

“While employment has not yet reached an ideal level, the U.S. is moving closer to the tipping point for substantial job growth,” said Matt Ferguson, CEO of CareerBuilder. “The economy is expanding, the housing market is recovering, consumer confidence is up and companies are starting to tap into cash reserves to invest – these are all good signs. As these trends strengthen, we expect hiring to hold steady in the second quarter and gain ground in the back half of the year.”

In the first quarter, 29 percent of employers added full-time, permanent headcount, up from 28 percent last year. Eleven percent decreased headcount, down from 12 percent in 2013; 59 percent made no change to staff levels while 2 percent was unsure.

Small businesses continue to trail large organizations in the percentage of employers hiring, but hiring among small businesses is expected to grow marginally compared to the second quarter of last year.

Hiring by company size:

  • 50 or fewer employees: 18 percent plan to add full-time, permanent staff in Q2 compared to 17 percent last year; 6 percent expect to reduce headcount, the same as last year
  • 250 or fewer employees: 22 percent plan to add full-time, permanent staff in Q2 compared to 21 percent last year; 6 percent expect to reduce headcount compared to 7 percent last year
  • 500 or fewer employees: 23 percent plan to add full-time, permanent staff in Q2 compared to 22 percent last year; 6 percent expect to reduce headcount compared to 8 percent last year
  • More than 500 employees: 32 percent plan to add full-time, permanent staff in Q2 compared to 33 percent last year; 11 percent expect to reduce headcount compared to 10 percent last year

The survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder among 2,138 hiring managers and human resource professionals. The survey was conducted between Feb. 10 and March 4, 2014.