June 14, 2016 – U.S. employers indicate stable hiring plans for the third quarter of 2016, according to the latest Manpower ‘Employment Outlook Survey,’ released today by ManpowerGroup.
Of the more than 11,000 U.S. employers surveyed, 23 percent anticipate increasing staff levels during the third quarter. This is a one percent increase from the second quarter, and a one percent decrease from the third quarter of 2015. Five percent of employers expect workforce reductions, and 71 percent expect no change in hiring plans. The final one percent of employers are undecided about their hiring intentions, resulting in a seasonally adjusted net employment outlook of +15 percent.
“Although employers have been increasingly cautious for the last three quarters, the U.S. hiring outlook is among the strongest globally, and we expect to see modest improvements in the labor market throughout most of the country,” said Kip Wright, senior vice president of Manpower in North America. “This is good news for job seekers and organizations; as the competition for talent heats up, the way in which companies engage individuals is more critical than ever. Employers need to ensure they have the skills and resources they need – right when they need them.”
U.S. Hiring Plans by Regions, Industry Sectors and Metro Areas / States
Quarter-over-quarter, U.S. employers in the Midwest, Northeast and South anticipate a slight decrease in hiring, while employers in the West expect hiring to remain relatively stable. Compared to one year ago at this time, the outlook is relatively stable in the Northeast and the West, and declines slightly in the Midwest and south.
Employers have a positive outlook in 12 of the 13 industry sectors included in the survey, with leisure & hospitality (+23 percent), wholesale & retail trade (+20 percent), transportation & utilities (+19 percent) and professional & business service (+18 percent) employers reporting the strongest hiring intentions.
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Among the 50 states, employers in Maine, Idaho, Montana, Delaware, Oregon and Kentucky report the strongest net employment outlooks, while Louisiana, New Jersey, Oklahoma, Nevada and Wyoming project the weakest.
Among employers in the 100 largest metropolitan statistical areas, the strongest job prospects are expected in Albany, NY; Richmond, VA; Charleston, SC; and Salt Lake City, UT. The weakest outlooks are projected in New Orleans and Baton Rouge, LA; Philadelphia, PA; Oklahoma City, OK; and Bakersfield, CA.
A Mixed Hiring Bag
The report follows mixed hiring figures and expectations emanating from employers throughout the U.S.
Employers only added 38,000 jobs in April, but the U.S. unemployment rate fell to 4.7 percent, according to the most recent U.S. Bureau of Labor Statistics report. While this sharp slowdown marks the fewest number of jobs created in more than five years, the unemployment rate now stands at its lowest mark since November 2007. The number of workers unemployed fell by 484,000 to 7.4 million.
Eighty four percent of HR leaders say they are hiring for full-time positions, according to a recent report by recruiting services company LaSalle Network. The survey also found that 70 percent of respondents feel optimistic about the economy for the remainder of 2016. Leaders within the healthcare, technology, and education industries were more optimistic about their hiring plans.
In addition, U.S. employers generally are remaining confident in their hiring plans. According CareerBuilder’s annual job forecast, 36 percent of employers are planning to add full time, permanent employees in 2016.
Comparing industries, financial services (46 percent), information technology (44 percent), and healthcare (43 percent) are expected to outperform the national average for employers adding full-time staff. Manufacturing (37 percent) is expected to mirror the national average.
According to the ‘2016 Hiring Outlook: Strategies for Adapting to a Candidate-Driven Market’ report released by The Execu | Search Group, 66 percent of employers plan to hire additional staff this year.
And with companies expecting to hire, employees have their eyes set on new positions. Twenty one percent of workers plan to look for new jobs in 2016, according to a new study released by Penna. Forty eight percent of people claimed the main reason for the change was that they were searching for better pay and benefits. Another 44 percent said it was down to the promise of greater development opportunities, while 32 percent said they were simply looking for a change in career direction. Penna’s survey found that employees aged 18 to 24 were the most likely to be planning a move this year, while 25 percent of those aged 25 to 34 are considering leaving their posts.
Contributed by Scott A. Scanlon, Editor-in-Chief, Hunt Scanlon Media