Are you one of the 27 percent of workers who plan to change jobs in the back half of the year? The odds of landing one – and getting paid more - are in your favor, according to CareerBuilder's 2017 Midyear Job Forecast.
The nationwide study reveals a significant year-over-year jump in the percentage of companies hiring full-time, part-time and temporary or contract workers from July 1 through December 31. More than half of employers anticipate offering higher starting salaries for new employees and the majority indicates that bigger paychecks won't just be for high-skilled workers, they will extend to entry-level workers as well.
In the second half of 2017:
- 60 percent of employers plan to hire full-time, permanent workers, up from 50 percent last year
- 36 percent of employers plan to hire part-time, permanent employees, up from 29 percent last year
- 46 percent of employers plan to hire temporary or contract workers, up from 32 percent last year
"Events dominating national headlines have had a polarizing effect in the U.S., but most employers remain confident in their outlook for financial growth and plans for hiring," said Matt Ferguson, CEO of CareerBuilder and co-author of The Talent Equation. "Job seekers stand to benefit not only from having more options, but also from the growing intensity in the competition for talent. Employers are moving quickly to recruit candidates and they are willing to pay more across job levels. They are also placing a greater emphasis on candidates having a positive experience when they apply to their firms. The current climate puts job seekers in a more advantageous position."
The national surveys, which were conducted online by Harris Poll on behalf of CareerBuilder from May 24 to June 16, 2017, included representative samples of 2,369 hiring managers and human resource managers and 3,642 full-time U.S. workers across industries and company sizes in the private sector.
How much of a pay increase can new and current employees expect?
Looking at a subset of human resources managers, 72 percent feel they have to start paying higher wages because the market has become increasingly competitive for talent. The majority say this also applies to entry-level workers:
- 24 percent say they have to pay more even if the entry-level worker has no college or training
- 17 percent say they have to pay more, but only if the entry-level worker has a college degree
- 19 percent say they have to pay more, but only if the entry-level worker has at least some college or training
Among all employers (hiring managers and human resources managers), 53 percent report they plan to offer higher starting salaries for new employees over the next six months, a big jump from 39 percent in the same period last year. Nearly one third (32 percent) plan to increase starting salaries on job offers by 5 percent or more. Two-thirds of employers (66 percent) plan to increase compensation for current employees before year end and 34 percent anticipate an increase of 5 percent or more.
What are the hot areas for hiring?
Information technology (72 percent) is leading the industries hiring in the back half of the year, coming in 12 percentage points higher than the national average for plans to add full-time, permanent headcount. Manufacturing (66 percent), health care1 (64 percent) and financial services (62 percent) are also expected to outperform the national average.
Looking across industries, some of the most in-demand roles employers say they will be recruiting for during this timeframe are those tied to:
- Skilled trades – 15 percent
- Software as a service – 14 percent
- Cybersecurity – 13 percent
- Sales enablement – 13 percent
- Talent management – 13 percent
- Providing a good user experience – 12 percent
- Managing and interpreting Big Data – 11 percent
- Creating digital strategies – 11 percent
- Social marketing – 10 percent
- E-commerce – 10 percent
- Developing apps – 10 percent
- Healthy living – 9 percent
Which region is hiring the most?
All regions are showing a year-over-year gain in the percentage of employers expecting to hire full-time, permanent employees in the back half of the year. The West leads with 67 percent of employers planning to add headcount, while the South remains on par with the national average. The Northeast and Midwest came in below the national average, but are reporting healthy increases over last year.
- West – 67 percent are hiring, up from 53 percent last year
- South – 61 percent are hiring, up from 50 percent last year
- Northeast – 56 percent are hiring, up from 49 percent last year
- Midwest – 53 percent are hiring, up from 46 percent last year
How do small, medium and large companies compare in plans for hiring?
Full-time, permanent hiring over the next six months is also expected to increase across company sizes. Midsize firms are leading the pack in the percentage of employers hiring, while small businesses are reporting the biggest year-over-year growth.
- 50 or fewer employees – 37 percent hiring, up from 27 percent last year
- 51 to 250 employees – 67 percent hiring, up from 53 percent last year
- 251 to 500 employees – 72 percent hiring, up from 64 percent last year
- 501 to 1,000 employees – 75 percent hiring, up from 69 percent last year
- 1,001 or more employees – 67 percent hiring, up from 61 percent last year
What is the outlook for Q3?
Nearly half of employers (47 percent) plan to add full-time, permanent employees in the third quarter, up from 34 percent last year. Seven percent expect to downsize staffs, relatively unchanged from 8 percent in Q3 2016. Forty-three percent anticipate no change and 3 percent are undecided.