Prospects good for job hunters

(CareerBuilder.com) -- Amidst a sub-par economic performance and slowing in productivity, employers remain cautious, but optimistic, in their recruitment plans for the third quarter.

Job creation carried forward in the first half of 2007. While the number of jobs added each month fell below the 189,000 average of 2006, more than 600,000 jobs were created from January through May with gains concentrated in the services industries, according to the Bureau of Labor Statistics.

The latest survey from CareerBuilder.com and USA TODAY shows more than two-thirds of employers (67 percent) reported their companies hired new full-time, permanent employees at their locations during the first six months of 2007. Forty-three percent expect to hire the same amount of employees in the latter half of the year as the first half while 24 percent expect to hire more. One-in-five (21 percent) expect to hire fewer employees.

The number of new jobs recorded at the BLS and activity recorded on online job sites indicate that, although the job market is slower than last year, it is not a slow job market. Looking forward to the third quarter, 35 percent of 2,417 hiring managers and human resource professionals in the private sector say they plan to increase their number of full-time, permanent employees at their locations. Five percent expect to decrease headcount while 52 percent expect no change.

Compensation in Q3 Operating within an increasingly employee-driven labor market, nearly one-in-five employers report they have seen a rise in the number of employees asking for a raise outside of the normal review period. Responding to a more competitive recruitment arena and increased pressure for higher compensation from in-demand workers, employers expect to boost salaries to attract and retain skilled talent.

Looking back on the second quarter, 55 percent of employers reported there was an increase in salaries for full-time, permanent employees. While 33 percent reported increases ranging from 1 to 3 percent, 21 percent reported a 4 to 10 percent range and 2 percent reported increases north of 10 percent. Looking forward to the third quarter, nearly half of employers (46 percent) expect to increase salaries. Twenty-eight percent of employers estimate compensation levels will rise 1 to 3 percent. Seventeen percent expect to grow salaries 4 to 10 percent while 1 percent expect increases to exceed 10 percent.

Hiring by Region Consistent with previous surveys, hiring activity is expected to remain strongest in the South and West. Thirty-eight percent of employers in the West and 37 percent in the South plan to increase their staff levels compared to 33 percent in both the Northeast and Midwest. Planned staff reductions are similar for the Midwest and South at 5 percent each, followed by the Northeast at 4 percent and the West at 3 percent.

Hiring by Industry Comparing select industries, hiring activity is likely to remain particularly strong in the areas of sales, information technology and healthcare. Forty-seven percent of sales (non-retail) employers, 46 percent of information technology employers and 41 percent of healthcare employers (with over 50 employees) expect to increase staff in the third quarter. They are followed by 35 percent in hospitality, 33 percent in retail, 31 percent in banking/finance and 28 percent in education.

In terms of staff cuts, 7 percent of both sales and information technology employers plan to decrease headcount followed by 5 percent each in hospitality, retail, banking/finance and education, and 3 percent in healthcare.

Hiring by Company Size Employers of all sizes will be contributing to job growth in the third quarter. On the higher end, 41 percent of organizations with more than 1,000 employees plan to hire new employees in the next three months. Forty percent of employers with 501 to 1,000 employers and 42 percent of those with 251 to 500 employees also plan to recruit. Comparatively smaller organizations will be doing their part as well with 35 percent of organizations with 51 to 250 employees and 27 percent of those with 50 employees or less anticipating an increase in staff levels.

The threat of staff reductions is present across organizations of all sizes, according to the survey. Three percent of organizations with 50 or less employees and 3 percent of organizations with 51 to 250 employees plan to decrease headcount. This compares to 7 percent for companies with more than 1,000 employees, 5 percent for those with 501 to 1,000 employees and 4 percent for those with 251 to 500 employees.

Survey Methodology This survey was conducted online within the United States by Harris Interactive on behalf of CareerBuilder.com among 2,417 hiring managers and human resource professionals, (employed full-time; not self-employed; with at least significant involvement in hiring decisions), ages 18 and over within the United States between June 1 and June 13, 2007. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.

With a pure probability sample of 2,417, one could say with a 95 percent probability that the overall results have a sampling error of +/-2 percentage points. Sampling error for data from sub-samples is higher and varies. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated. E-mail to a friend

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