Better Wages in the End of 2016?

According to CareerBuilder’s Midyear Job Forecast, hiring in the end of this year will look like last year—but with better wages.

The U.S. hiring outlook for the next 5 months is expected to mirror the same period in 2015—but paychecks will likely become a little bigger, according to CareerBuilder’s Midyear Job Forecast. More than one-half of employers will raise wages for current employees, while two in five will offer higher starting salaries on job offers in the second half of the year.
The nearly one in four workers (23%) who plan to change jobs before the end of the year will see new job openings for full-time, part-time, and temporary work. In the second half of 2016:

  • One-half (50%) of employers plan to hire full-time, permanent workers, on par with 49% last year.
  • Nearly 3 in 10 (29%) of employers plan to hire part-time employees, on par with 28% last year.
  • Almost one-third (32%) of employers plan to hire temporary or contract workers, down slightly from 34% last year.

“Based on our study, the U.S. job market is not likely to experience any major dips or spikes in hiring over the next six months compared to last year,” said Matt Ferguson, CEO of CareerBuilder® and coauthor of The Talent Equation, in a press release. “While certain industries or locations may produce more job growth, hiring overall will hold steady throughout the election season and through the end of the year.”
Ferguson added, “Where we’ll likely see a more noteworthy change is in the area of wages. The number of hires made each month continues to lag the number of jobs posted for key functions within organizations, and the majority of employers feel they will now have to pay workers more to attract and retain them because the talent supply is not keeping up with demand.”
The national surveys, which were conducted online by the Harris Poll® on behalf of CareerBuilder from May 11 to June 7, 2016, included representative samples of 2,153 hiring managers and human resources managers and 3,244 full-time U.S. workers across industries and company sizes in the private sector.

How Much Are Employers Willing to Boost Wages?

Looking at a subset of human resources managers, 70% feel their companies will have to start paying workers higher wages because the market has become increasingly competitive for the talent needed.
Among all employers (hiring managers and human resources managers), 39% reported they plan to offer higher starting salaries for new employees over the next 5 months; 20% of all employers plan to increase starting salaries on job offers by 5% or more. More than one-half (53%) of employers plan to increase compensation levels for current employees before year end and, similar to salaries on new job offers, 21% said the compensation increase for existing staff will likely be 5% or more.

What Are the Hot Industries and Functions for Hiring?

Information technology (68%), health care (65%), financial services (56%), and manufacturing (51%) are among industries expected to outperform the national average for full-time, permanent hiring in the second half of 2016.
Looking across all industries, one in six employers (16%) said they plan to hire more recruiters in the next 6 months to help bring new talent in the door. Some of the in-demand roles employers said they will be recruiting for in the second half of the year are those tied to:

  • Cloud technology—12%
  • Mobile technology—11%
  • Social marketing—11%
  • Providing a good user experience—11%
  • Developing apps—9%
  • Wellness—9%
  • E-commerce—9%
  • Financial regulation—9%
  • Creating a digital strategy—9%
  • Managing and interpreting Big Data—8%
  • Cyber security—8%

Among broader functional areas, employers will be hiring for:

  • Customer service—29%
  • Sales—27%
  • Information technology—25%
  • Production—20%
  • Accounting/finance—13%
  • Human resources—13%
  • Clinical—12%
  • Business development—11%
  • Marketing—11%
  • Research and development—11%

Are Small Businesses Growing Bolder in their Hiring Plans?

While full-time, permanent hiring among most small, medium, and large organizations is expected to be on par with the back half of 2015, a the below 5 percentage-point acceleration is anticipated for small businesses with 251 to 500 employees:

  • 50 or fewer employees: 27% hiring, the same as last year
  • 51 to 250 employees: 53% hiring, up from 51% last year
  • 251 to 500 employees: 64% hiring, up from 59% last year

Among larger companies that employ more than 500 employees, three in five hiring managers (62%) plan to add full-time, permanent headcount at their location, the same as last year.
Tomorrow we’ll look at what region will be the hottest for hiring.