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Get CareerBuilder’s 2011 Mid-Year Job Forecast (And Maybe Even Hug a Stranger)

CareerBuilder's 2011 Mid-Year Job ForecastThere’s good news (Justin Timberlake may save MySpace!), disappointing news (we’ll probably never get Friendster back), and news that makes us want to hug a stranger on the street: Despite ongoing concerns over threats to economic growth, CareerBuilder’s 2011 Mid-Year Job Forecast shows that employers remain positive in their hiring expectations for the remainder of the year. (It’s OK, you can hug that stranger on the street; we won’t judge.)

Just how positive are employers about the future of hiring, you ask?

Well, nearly half of employers (47 percent) plan to hire new employees from July through December of this year, up from 41 percent in 2010, according to the survey conducted by Harris Interactive© of more than 2,600 hiring managers and human resource professionals. (See the infographic here.)

Things are looking pretty good in other areas, too: The percentage of companies hiring is also higher than last year in some instances:

  • Companies hiring full-time, permanent employees –  35 percent this year, up from 28 percent in 2010
  • Companies hiring part-time employees – 15 percent this year, the same as 2010
  • Companies hiring contract or temporary employees – 12 percent this year, up from 9 percent in 2010

Which jobs are hottest for hiring?

The top three job areas in which businesses plan to hire first are those that involve being on the front lines with customers, and those that drive innovation. Customer service still claims the No. 1 spot for recruitment, with information technology slightly edging out sales this year for the No. 2 ranking on the list:

  1. Customer Service  |  23 percent
  2. Information Technology  |  21 percent
  3. Sales  |  20 percent
  4. Administrative  |  15 percent
  5. Business Development  |  11 percent
  6. Accounting/Finance  |  10 percent
  7. Marketing  |  9 percent

As CareerBuilder CEO Matt Ferguson stressed, the U.S. is seeing job creation across the board, and though some factors may prevent a huge acceleration in hires, hiring activity doesn’t appear to be ending any time soon:

“Last year, certain sectors or departments in companies were producing jobs.  This year, the U.S. is seeing job creation in all industries, functions and company sizes,” said Ferguson.  “Our survey, listings on CareerBuilder.com, and conversations we have with employers on a daily basis all indicate that hiring activity will sustain and improve in the months to come with a diverse mix of jobs.  While higher energy prices, debt, inflation and other factors may deter a significant acceleration in hiring, employers have encouraging news for the millions of Americans who are looking for jobs.”

Hiring by region: Where are employers hiring the most employees?

There’s more news to make us look forward to the year progressing: All regions are trending above 2010 in hiring prospects for the second half of 2011, with the South leading the way in optimism:

  • South: 38 percent are planning to hire full-time, permanent employees, up from 27 percent last year
  • West: 35 percent, up from 28 percent last year
  • Northeast: 34 percent, up from 29 percent last year
  • Midwest: 32 percent, up from 28 percent last year

Two trends to watch for in the second half of 2011:

      1. Employee Turnover:
        • The competition for specialized talent is expected to intensify as employers recruit and try to retain top performers for hard-to-fill, in-high-demand positions in areas like health care and technology.
        • More than one-third (35 percent) of employers are concerned that key talent will leave their organizations as the economy improves, a trend that has become increasingly evident over the last six months.
        • Eighteen percent of employers reported top workers left their organization in the second quarter, up from 14 percent in the first quarter. This shouldn’t come as a surprise, as CareerBuilder’s 2010 forecast revealed that 25 percent of all workers planned to leave their organizations within a year.
      2. Shortage of Skilled Workers:
        • Fifty percent of employers reported there is a shortage of skills within their organization, up from 48 percent last year.
        • The biggest shortages were reported in the areas of Information Technology, Customer Service and Communications.
        • More than one-third (36 percent) of human resource managers reported they have positions for which they can’t find qualified candidates, up from 32 percent last year.

What happened in Q2 2011?
This past quarter, 29 percent of employers added full-time, permanent headcount, up from 24 percent last year. Eleven percent decreased headcount (same as Q2 2010), while 59 percent made no change in staff levels (compared to 64 percent in Q2 2010) and 1 percent were unsure.

What will happen in Q3 2011?

  • For eight consecutive quarters, actual hiring exceeded what was originally anticipated, indicating that employers tend to be more conservative in their hiring projections than in their hiring behavior. Looking forward, 26 percent of employers plan to add full-time, permanent employees in the third quarter (only 21 percent planned to do so in Q3 2010), but if trends persist, the actual hiring number may come in higher at quarter end.
  • Eight percent expect to downsize staffs.  Sixty-one percent anticipate no change, while 5 percent are undecided.

To get in-depth survey results and further predictions for the second half of 2011, download the full forecast, or for a quick snapshot, check out our handy-dandy infographic.

Amy Chulik McDonnell

About Amy Chulik McDonnell

Originally hailing from Ohio, Amy is a content strategist on the marketing and communications team who has been with both CareerBuilder and the city of Chicago for more than eight years. She writes on a range of recruitment topics on The Hiring Site, striving to bring a dose of clarity and humor to sometimes complicated issues around employee attraction, engagement and retention. The voice of @cbforemployers on Twitter, Amy also writes and edits content for the CareerBuilder website and CareerBuilder ebooks, emails, marketing campaigns, and more. When she's not working, Amy spends as much time as possible reading, cooking, writing short stories, eating Nutella out of the jar, waiting for CTA buses and trains, going to see her favorite bands live, and spending time with people who inspire and challenge her.
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  2. [...] gap in the number of workers needed to fill job openings. We’ve already seen evidence that  47 percent of employers plan to hire full-time workers in the last six months of this year — and some U.S. regions are more promising more than [...]

  3. [...] gap in the number of workers needed to fill job openings. We’ve already seen evidence that  47 percent of employers plan to hire full-time workers in the last six months of this year — and some U.S. regions are more promising more than [...]

  4. [...] gap in the number of workers needed to fill job openings. We’ve already seen evidence that  47 percent of employers plan to hire full-time workers in the last six months of this year — and some U.S. regions are more promising more than [...]

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  7. [...] to a Career Builder-USA Today mid-year forecast issued July 7, 2011: [N]early half of employers (47 percent) plan to hire new employees from July [...]

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