More than one third of employers expect to add full-time, permanent employees in 2015, the best outlook from Career Builders survey since 2006. Salary increases – including raises for minimum wage workers – are also on the agenda of hiring managers. The U.S. job market is turning a corner as caution gives way to confidence. Hiring in 2014 was broad-based, including encouraging activity among small businesses and hard-hit sectors like manufacturing and construction. The amount of companies planning to hire in 2015 is up 12 percentage points over last year, seeing the stage for a more competitive environment for recruiters that may lend itself into some movement in wages.
FULL TIME PERMANENT HIRING
Thirty-six percent of employers plan to increase full-time, permanent headcount in 2015, a significant jump from 24 percent last year when employers were more hesitant to expand their workforce. Nine percent expect to decrease staff levels, an improvement from 13 percent last year, while 48 percent anticipate no change and 8 percent are unsure. The percentages of employers hiring full-time, permanent employees in Information Technology 54 percent, Financial Services 42 percent, Manufacturing 41 percent and Health Care 38 percent are expected to outperform the national average.
TEMPORARY AND CONTRACT HIRING
Temporary employment is expected to pick up over the next year as employers struggle to fill in-demand roles and strive to maintain more flexibility in their workforce. Forty-six percent of employers plan to hire temporary or contract workers in 2015, up from 42 percent last year. Of these employers, 56 percent plan to transition some temporary or contract workers into full-time, permanent roles.
TRENDS TO WATCH THIS YEAR
At the center of one of the most debated issues of the year, minimum wage workers may be earning bigger paychecks going forward. Forty- five percent of employers expect to raise the minimum wage within their organizations in 2015. Of these employers, half (53 percent) will raise it by $2 or more dollars per hour while one-third (32 percent) will raise it by $3 or more. Forty-seven percent will limit the increase to $1 or less. The majority of employers (69 percent) said they will pay $10 or more per hour while 39 percent will pay $12 or more. Nearly one in five (18 percent) will pay $15 or more. While still the most cautious when it comes to expanding staff, small businesses are planning to have extra hands on deck to meet increased market demands. Twenty-nine percent of small businesses with 250 or fewer employees expect to add full-time, permanent workers, up from 22 percent last year. Seven percent will down-size, an improvement from 9 percent last year. As roles within organizations become more complex and data-driven, hiring managers have adjusted requirements for their job openings. Twenty-eight percent of companies say they’re now hiring more workers with master’s degrees for positions that had been primarily held by workers with four-year degrees. Thirty-seven percent are now hiring workers with college degrees for those that had been primarily held by workers with high school diplomas — 65 percent of these employers attributed this to the skills required for positions evolving within their firms. Twenty-three percent of employers expect to recruit part-time workers over the next year, up six percentage points over last year. While various factors will influence this trend, 14 percent of all employers stated they will likely hire more part-time workers in 2015 due to the Affordable Care Act.