Payday loans

April 10, 2012

Second Quarter Could be a Silver Lining for Hiring

Filed under: Compensation,Hiring & Jobs — Tags: , 1:06 pm

In my blog last week, I reported the unemployment rate had held steady for the first two months of 2012.  The latest release from the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) shows that unemployment in March was slightly down again, at 8.2%.  These recent improvements might go toward improving our confidence in a gradual recovery from the recession.  Bolstering this image, SHRM recently released its Jobs Outlook Survey Report for the second quarter of 2012.

Compared with results from a year ago, hiring activity and optimism about forthcoming job growth have both improved.  Of 333 HR professionals surveyed, 58% said they were either somewhat or very optimistic about job growth in the United States over the second quarter.  More employers are also looking to fill vacant positions, up 2% from 33% in April 2011.  Only 7% of employers said they had plans to reduce the number of staff in the second quarter.

The outlook is brighter for those who often suffer the most when the unemployment rate is high: among companies that are planning to increase staff between April and June, 33% will hire skilled manual workers and 31% will hire hourly service workers.  The majority of these jobs will be available in the privately owned for-profit and publicly owned for-profit sectors (both even at 42% who plan to hire more staff in second quarter).

If hiring rates continue to steadily improve, we can expect new-hire compensation rates to edge up as well.  It will take some time to catch up, as new-hire compensation is largely unchanged in the first quarter of 2012.  “This is consistent with recent BLS findings on real average hourly earnings, which fell 1.1 percent in February 2012 compared with February 2011. Several private surveys have forecast minimal or no increases to salary budgets in 2012, with pay raises commonly around 3 percent.”

Source: SHRM

Share

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.