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New jobs ring in new year

More than half surveyed expect to add new jobs in 2006

By Matt Ferguson
CEO, CareerBuilder.com

Editor's Note: CNN.com has a business partnership with CareerBuilder.com, which serves as the exclusive provider of job listings and services to CNN.com.

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METHODOLOGY

The new CareerBuilder.com survey, "2006 Job Forecast," was conducted from November 15 to December 6, 2005 of more than 2,050 workers. Methodology used to collect survey responses for this study involved selecting a random sample of comScore Networks panel members. These members were were asked via e-mail to participate in a short online survey.

The results of this survey are statistically accurate to within +/- 2.16 percentage points (19 times out of 20). Note: the sample of 2,050+ included 1,000 hiring managers. The results for the hiring managers alone are accurate within +/- 3.09 percentage points (19 times out of 20).

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Despite record energy costs and the destruction caused by hurricanes and other disasters in the U.S., the nation's economy has managed to expand at a healthy pace and is paving the way for a sturdy job market in 2006.

White House economists are projecting 3.4 percent growth in the national economic output in 2006. After creating more than 2 million jobs in 2005, the U.S. is expected to add 2 million more in 2006 and further energize the heated competition for qualified talent.

The Business Roundtable's December 2005 CEO Economic Outlook Survey shows the confidence of U.S. business leaders is strengthening with more than half expecting a rise in capital spending in the next six months and 40 percent expecting to add more employees.

CareerBuilder.com's 2006 Job Forecast reflects this optimism. Fifty-four percent of more than 1,000 hiring managers surveyed plan to increase their staffs in the coming year to expand operations, improve the customer experience and launch new product lines and services; only 9 percent plan to decrease their staffs.

While 43 percent of hiring managers anticipate adding 10 employees or less, one in 10 report more ambitious plans of recruiting more than 100 employees. Twenty percent expect to add more than 50 new employees.

The majority of these hiring managers anticipate that most of their recruitment activity will take place during the first half of the year. The candidates they will be targeting most aggressively will be those specializing in customer service as they take measures to penetrate new markets and fortify relationships with existing customers.

Other top picks from the survey include sales, retail, information technology, accounting/finance and health care. CareerBuilder.com has already experienced a 20 percent to 25 percent increase in job postings for these positions year over year.

From a regional perspective, employers in the South and West appear slightly more confident about their recruitment plans for the coming year: 55 percent of hiring managers in these regions expect to increase headcount; 53 percent in the Midwest and 50 percent in the Northeast plan increases.

Along with creating permanent positions in the U.S., employers will be looking for temporary help and outsourcing overseas to execute business initiatives.

Forty-seven percent of hiring managers say they will be recruiting temporary employees. Fourteen percent say they are likely to outsource some functions overseas in 2006, nearing the same amount who reported doing so in 2005.

Nearly one in 10 employers expect to recruit candidates from overseas to fill positions located in the U.S. as they compete for top performers in a shrinking labor pool.

In addition to more aggressive recruitment plans, employers are implementing measures to retain current employees.

Fifty-eight percent of workers reported receiving a raise in 2005 with one in five receiving an increase of 5 percent or more. One in 10 workers reported they were awarded a promotion.

Increased satisfaction levels with training and development programs, career advancement opportunities and the performance of corporate leaders were also reported.

The survey indicates employee retention strategies will become even more mission-critical in 2006, considering nearly three-in-ten workers expect to change jobs in the next 12 months.



© Copyright CareerBuilder.com 2005. All rights reserved. The information contained in this article may not be published, broadcast or otherwise distributed without the prior written authority
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