Survey: Hiring Is Slowing Compared to 2012 – and the Trend Will Continue

Hiring is slowing from last year, and the trend is predicted to continue at least through the rest of the first half of the year, says a new report from CareerBuilder.

The job board’s quarterly employment forecast says the U.S. should expect somewhat slower hiring through the end of June than it saw for the same period last year.

That comes on the heels of a first quarter that was slightly better than what CareerBuilder’s survey foresaw three months ago, but which was still down from 2012.

Of the more than 2,000 hiring managers and human resource professionals distributed across industries and company sizes polled for the report, 26 percent said they expect an increase in their full-time, permanent headcount this quarter. Last year, CareerBuilder forecast a 30 percent second-quarter increase, and later, found 34 percent actually did add staff.

“Concerns … are weighing on employers’ minds”

The first quarter survey said 26 percent of respondents expected to add staff; 28 percent actually did. Still, that was down from 2012 when 33 percent of the firms in the poll added jobs.

On Friday (April 5), the U.S. Department of Labor will release its jobs report for March. Expectations are that it will show about 200,000 new jobs created during the month. But an ADP jobs report yesterday raised doubts about those initial predictions when it came in at 158,000 new, private sector jobs created during the month. That was far below what economists were expecting.

Like other predictions about job growth, the CareerBuilder poll found employers more cautious now than they were last year.

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“The U.S. job market is in a better place today, but concerns over spending cuts, wavering global economies, and other factors are weighing on employers’ minds,” said Matt Ferguson, CEO of CareerBuilder. “We expect continued stability and improvement as the year goes on.”

Hiring by company size

The decrease in hiring expectations cuts across all company sizes. Here’s how the full-time, permanent hiring in the second quarter breaks down, according to the survey:

  • 50 or fewer employees — 17 percent to add, down from 20 percent last year; those reducing head count increased to 6 percent in 2013 from 5 percent last year.
  • 250 or fewer employees — 21 percent will add, down from 22 percent  last year; those reducing head count increased to 7 percent in 2013 from 5 percent last year.
  • 500 or fewer employees — 22 percent will add, down from 25 percent last year; those reducing head count increased to 8 percent in 2013 from 5 percent last year.
  • More than 500 employees 33 percent will add, down from 38 percent last year; those reducing head count increased to 10 percent in 2013 from  percent last year.

However, the picture hasn’t significantly changed when it comes to the use of temporary workers. Last year, 34 percent of employers said they would be hiring contractors or temps in the second quarter.

Now, 32 percent said they planned to do that. And 24 percent are planning to transition some contract or temporary staff into permanent employees in the second quarter, the same as last year.

John Zappe is the former editor of TLNT.com and contributing editor of ERE.net. John was a newspaper reporter and editor before transitioning to digital media. In 1994, he launched one of the  first newspaper sites. Before joining ERE Media , John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group where he developed and managed a team of developers, content producers and digital advertising and marketing specialists.

Today, John is a contract writer producing whitepapers, blog posts, thought leadership articles and marketing content and managing  social media programs. He also works with organizations and businesses to assist with audience development and marketing.His website is JohnZappe.com.

In his spare time he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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