2007 Job Market Trends

If you are planning to find a new job in the new year, you just may be in luck.CareerBuilder.com has released the results of its latest survey. Economists and employers predict a stable hiring environment to carry over in the new year."Recent reports from the U.S. Department of Labor support a sense in the market that the economy is slowing at a gradual, reasonable pace and inflation has steadied," said Matt Ferguson, CEO of CareerBuilder.com.

He said that 40 percent of hiring managers and human resource professionals surveyed said they would increase their number of full-time, permanent employees in 2007. Eight percent expected to decrease their employee head count, while 40 percent said they expect no change in the numbers. About 12 percent surveyed said they were not sure. While 36 percent of employers expect to add 10 employees or less in 2007, 29 percent will hire more than 50 and 20 percent will hire more than 100.

Nearly one-in-10 employers will hire more than 500 new employees. On par with previous surveys, the areas employers will be recruiting for the most include health care (24 percent), administrative-clerical (19 percent), sales (17 percent), accounting-financial operations (17 percent), customer service (13 percent), information technology (13 percent), management (12 percent) and engineering (9 percent). "Employers expect to face greater human capital challenges as a large number of baby boomers retire and productivity growth plateaus," said Ferguson. "Forty percent of employers report they currently have job openings for which they can't find qualified candidates.

Going into 2007, the U.S. workforce is likely to see employers become more competitive in recruitment and retention efforts evident in higher salaries, better training and career advancement opportunities and more flexible work cultures."

The survey found seven trends for the new year.

1.) Bigger Paychecks: Eighty-one percent of employers report their companies will increase salaries for existing employees.
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Sixty-five percent will raise compensation levels by 3 percent or more while nearly one-in-five will raise compensation levels by 5 percent or more. Nearly half of employers (49 percent) expect to increase salaries on initial offers to new employees.
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Thirty-five percent will raise compensation levels by 3 percent or more while 17 percent will raise compensation levels by 5 percent or more.

2.) Diversity Recruitment -- Hispanics Workers in Demand: Understanding the positive influence workforce diversity has on overall business performance, employers remain committed to expanding the demographics of their staffs.
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One-in-10 employers report they will be targeting Hispanic job candidates most aggressively of all diverse segments. Nine percent plan to step up diversity recruiting for black job candidates, while 8 percent will target female job candidates.
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Half of employers recruiting bilingual employees say English-and-Spanish-speaking candidates are most in demand in their organizations.

3.) More Flexible Work Arrangements: Work-life balance is a major buzz phrase among U.S. employers as employees struggle to balance heavy workloads and long hours with personal commitments.
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Nineteen percent of employers say they are very or extremely willing to provide more flexible work arrangements for employees such as job sharing and alternate schedules. Thirty-one percent are fairly willing.

4.) Rehiring Retirees: Employers continue to express concern over the loss of intellectual capital due to a large number of baby boomers approaching retirement.
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One-in-five employers plan to rehire retirees from other companies or provide incentives for workers approaching retirement age to stay on with the company longer.

5.) More Promotions: With the perceived lack of upper mobility within an organization being a major driver for employee turnover, employers are carving out clearer career paths.
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Thirty-five percent of employers plan to provide more promotions and career advancement opportunities to their existing staff in the new year.

6.) Hiring Overseas: Companies continue to drive growth by entering or strengthening their presence in global markets.
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Thirteen percent of employers report they will expand operations and hire employees in other countries in 2007. Nine percent are considering it.
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Twenty-three percent of employers report they will hire the most workers overseas in China and 22 percent will hire the most in India.

7.) Better Training: In light of the shortage of skilled workers within their own industries, employers are looking for transferable skills from other industries.
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Seventy-eight percent report they are willing to recruit workers who don't have experience in their particular industry or field and provide training and certifications needed.

Hiring activity is expected to remain strongest in the South and West in 2007, according to the survey. Forty-four percent of employers in the South plan to add new employees compared to 41 percent of those in the West, 38 percent in the Midwest and 36 percent in the Northeast.Measuring the number of employers expecting to decrease head count, the Midwest leads at 10 percent followed by the South and Northeast at 7 percent and the West at 6 percent.The survey said that 36 percent of hiring managers and human resource professionals plan to add new employees in the next three months.

Eight percent will decrease head count while 48 percent anticipate no change and 9 percent are unsure.There is more good news: 51 percent of employers reported that salaries for full-time, permanent employees have increased over the last three months. Forty-eight percent of employers expect salaries to increase in the next three months.

Thirty-eight percent estimate the average raise to amount to 3 percent or more while one-in-10 (11 percent) anticipate an average raise of 5 percent or more.The survey was conducted by conducted by Harris Interactive, tracking projected hiring trends for 2007. The survey, titled "2007 Job Forecast," was conducted from Nov. 17 through Dec. 11, of 2,627 hiring managers and human resource professionals in private sector companies.To view the entire forecast, click here.