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More US employers to hire temps in 2016

January 07, 2016

US employers’ plans to hire temporary workers in 2016 are a bit more optimistic than they were heading into 2015, according to CareerBuilder’s job forecast for 2016. The forecast’s survey found nearly half of employers, 47%, plan to hire temporary or contract workers in 2016, up slightly from 46% in last year’s survey.

Additionally, 58% of these employers plan to transition some temporary or contract workers into permanent roles in 2016.

The survey also found that 36% of employers plan to add full-time, permanent headcount in 2016, unchanged from the 2015 survey, which ranked as the best outlook since 2006. Ten percent plan to decrease staff levels — up from 9% last year — while 45% anticipate no change and 9% are unsure of plans.

“On average, the US has added 200,000 jobs each month over the last two years, and we expect 2016 to produce similar results, if not better,” said CareerBuilder CEO Matt Ferguson. “The market is also showing signs of broader wage pressure. While employers have been more willing to pay a premium for high-skill labor, they now have to pay more competitive wages for entry-level positions. Workers are gaining leverage.”

Financial services, IT and large healthcare organizations are expected to outperform the national average for employers adding full-time staff. Manufacturing is expected to mirror the national average at 37%.

Of the employers who plan to increase the number of full-time employees in the New Year, the top five areas they will recruit for include:

  1. Customer service: 32%
  2. Information technology: 29%
  3. Sales: 27%
  4. Production: 24%
  5. Administrative: 20%

The survey also listed five trends to watch in 2016, which include:

  1. Opening new doors for low-skill workers: Many employers are concerned with a growing skills gap, 63%, and report extended vacancies within their organizations at 48%. Thirty-three percent of employers plan to hire low-skill workers and invest in training them for high-skill jobs in 2016.
  2. Hiring younger interns: To encourage the next generation to pursue STEM-related fields (science, technology, engineering and math) and other in-demand areas, employers are building relationships with students at an early age. One-quarter plan to hire high school students as interns over the next 12 months.
  3. Increasing wages at all levels: To retain and attract top performers, 83% of employers plan to increase compensation for existing employees — on par with 82% last year — while 66% will offer higher starting salaries for new employees — up from 64% last year.
  4. Reaching beyond US borders: Employers will continue to look at talent pools outside the US to help fill labor deficits; 19% say they will hire workers with H-1B visas in 2016, which will enable them to employ temporarily foreign-born workers for specialized occupations.
  5. Diversifying management: Companies are expanding demographics in their company leadership. Fifty-five percent of employers plan to hire or promote more women for management roles, and 53% plan to do the same for diverse workers. Forty-seven percent of employers plan to promote workers under the age of 30 into management roles.

The survey was conducted online within the US by Harris Interactive on behalf of CareerBuilder among 2,338 hiring managers and human resource professionals. It was conducted between Nov. 4 and Dec. 1, 2015.