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Employers split on hiring expectations into new year
Date: 12/02/2009
By: Jennifer Lundmark
By: Jennifer Lundmark
According to a new survey by recruiter Dice Holdings, even though some companies anticipate scaling back their workforce into 2010, overall hiring expectations among employers are rising for the first time in 18 months.
The survey indicates that 45 percent of employers and recruiters expect to increase hiring during the first two quarters of 2010, and 80 percent are looking to fill at least one position in the next three months.
"Many employers aren't quite ready to make major investments in staff, but more companies are beginning to selectively recruit," said Dice Holdings CEO Scot Melland.
He added, "We are seeing subtle signs in our business that indicate the labor markets are on firmer ground which this hiring survey seems to reinforce."
Despite the optimism expressed by about half of the employers surveyed, a nearly equal portion (48 percent) said they plan to scale back employment over the same timeframe. While the figure may be disappointing to job seekers, pessimism among company owners has shrunk significantly since June, when about 75 percent of employers reported decreased hiring expectations.
Also shrinking are wages and benefits, according to the survey. A resounding 90 percent of companies surveyed said that salaries to new hires will be down in 2010 and 25 percent reported cutting health and retirement benefits in the recession.
Melland, however, is among the 29 percent of employers who expect hiring and compensation packages to return to previous levels during 2010.
"As confidence builds in the underlying business climate, professionals will be raising their hand for new career challenges with pay increases either internally or externally," he said.
According to the Bureau of Labor Statistics, the unemployment rate rose from 9.8 percent to 10.2 percent during the month of October.
The survey indicates that 45 percent of employers and recruiters expect to increase hiring during the first two quarters of 2010, and 80 percent are looking to fill at least one position in the next three months.
"Many employers aren't quite ready to make major investments in staff, but more companies are beginning to selectively recruit," said Dice Holdings CEO Scot Melland.
He added, "We are seeing subtle signs in our business that indicate the labor markets are on firmer ground which this hiring survey seems to reinforce."
Despite the optimism expressed by about half of the employers surveyed, a nearly equal portion (48 percent) said they plan to scale back employment over the same timeframe. While the figure may be disappointing to job seekers, pessimism among company owners has shrunk significantly since June, when about 75 percent of employers reported decreased hiring expectations.
Also shrinking are wages and benefits, according to the survey. A resounding 90 percent of companies surveyed said that salaries to new hires will be down in 2010 and 25 percent reported cutting health and retirement benefits in the recession.
Melland, however, is among the 29 percent of employers who expect hiring and compensation packages to return to previous levels during 2010.
"As confidence builds in the underlying business climate, professionals will be raising their hand for new career challenges with pay increases either internally or externally," he said.
According to the Bureau of Labor Statistics, the unemployment rate rose from 9.8 percent to 10.2 percent during the month of October.
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