CareerBuilder’s 2013 U.S. Job Forecast

by Brittany Schlacter on December 26, 2012

A new year offers a hopeful opportunity for many job seekers and individuals looking to shift their careers. With the changing of the calendar, this coming year has the potential for an improved hiring environment.

Careerbuilder’s annual hiring forecast showcases 2013 as a time for an expected increase in jobs, but employers will still continue to play it safe in terms of hiring. Just 26 percent of hiring managers plan to add full-time, permanent employees in the new year, up three percent from 2012. This study also points to increased competition for high skill labor and improved compensation trends. 

Conducted throughout the month of November by Harris Interactive, this nationwide study included more than 2,600 hiring managers and human resources professionals, as well as more than 3,900 workers across industries and company sizes.

“More than 60 percent of employers reported that they are in a better financial position than last year and more than 40 percent said their sales increased over the last six months,” said Matt Ferguson, CEO of CareerBuilder. “While this bodes well for job creation, employers are still assessing the implications of a weakened global market and a modest recovery at home.  The guarded approach to hiring that has been evident over the last few years was sustained in part by concerns over the fiscal cliff during the time of the survey.  We don’t expect 2013 to bring any big surprises in regard to employment, rather it will continue on a path of stability and gradual growth.”

Temporary and Contract Hiring

Forty percent of employers plan to hire temporary and contract workers in 2013, up from 36 percent last year. Among these employers, 42 percent plan to transition some temporary workers into full-time, permanent employees over the next 12 months.

Small Business Hiring

Fifteen percent of small businesses reported they plan to take out new lines of credit in 2013. While small businesses are showing more confidence in their hiring, there are still concerns in regard to financial stability and market demand.
  • 50 or fewer – 19 percent plan to add full-time, permanent staff in 2013, up from 16 percent in 2012; 6 percent plan to reduce headcount, up from 3 percent last year.
  • 250 or fewer – 24 percent plan to add full-time, permanent staff in 2013, up from 20 percent in 2012; 7 percent plan to reduce headcount, up from 4 percent last year.
  • 500 or fewer – 24 percent plan to add full-time permanent staff in 2013, up from 21 percent in 2012; 7 percent plan to reduce headcount, up from 4 percent last year.

Hiring By Region

The West and the South house the most employers planning to recruit new employees in the next year.
  • West – 28 percent plan to add full-time, permanent staff in 2013, up from 24 percent in 2012; 9 percent plan to reduce headcount, the same as last year.
  • South – 27 percent plan to add full-time, permanent staff in 2013, up from 23 percent in 2012; 9 percent plan to reduce headcount, up from 7 percent last year.
  • Midwest – 24 percent plan to add full-time, permanent staff in 2013, up slightly from 23 percent in 2012; 10 percent plan to reduce headcount, up from 6 percent last year.
  • Northeast – 23 percent plan to add full-time, permanent staff in 2013, up from 21 percent in 2012; 10 percent plan to reduce headcount, up from 8 percent last year.

Navigating the Skills Gap in 2013

There is an increasing number of areas where demand for skilled positions is growing much faster than the supply. Workers should be on the lookout for three trends in the new year:
 
1. Employers Scouting Talent at Others Organizations
Employers may come knocking, solicited or not.  Nearly one-in-five workers (19 percent) reported they have been approached to work for another company in the last year when they didn’t apply for a position with that organization. Sales workers were the most likely to report being courted at 33 percent, followed by 31 percent of professional and business services workers and 26 percent of information technology workers.
 
2. More Employers Willing to Increase Compensation
In an effort to retain and attract top talent for skilled positions, employers expect to provide higher compensation for both current staff and prospective employees. Seventy-two percent of employers plan to increase compensation for existing employees – up from 62 percent last year – while 47 percent will offer higher starting salaries for new employees – up significantly from 32 percent last year. Most increases will be 3 percent or less.
 
3.  Employers Creating the Right Candidate Instead of Waiting for One
Employers are taking measures to “re-skill” workers themselves. Thirty-nine percent plan to train people who don’t have experience in their particular industry or field and hire them for positions within their organizations, up from 38 percent last year.
*Totals may not equal 100 percent due to rounding or respondents being able to choose more than one answer.
How will this job forecast affect your job search plans (positively or negatively) for 2013? Share below!

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Tagged as: 2013, CareerBuilder, employees, employers, employment, Human Resources, job forecast, jobs, prospective employers

Article by Brittany Schlacter

Brittany Schlacter graduated from Ball State University with a B.S. in public relations and a minor in fashion. Before joining Come Recommended as a content creator trainee, she gained valuable experiences in public relations, community management, blogging, integrated marketing, and business operations.

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