Job Growth Expected to Hold Steady Through 2016

Job Growth Expected to Hold Steady Through 2016

In order to keep up with today’s competitive job market, many employers will be instituting different hiring strategies in 2016, new research finds.

 

Besides paying workers higher starting salaries, many employers will focus on giving more opportunities for low-skill employees to move up the ranks, hiring younger interns, more women and minorities in leadership, among other trends according to a new study from CareerBuilder.

 

Comparing industries, financial services (46 percent) information technology (44 percent) and health care (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 report.

 

Based on the research CareerBuilder uncovered several key trends that will help shape the employment landscape in 2016.

 

Five Trends to Watch in 2016

  • Opening New Doors for Low-Skill Workers –With most employers worried about a growing skills gap (63 percent) and report extended vacancies within their organizations (48 percent).The study found that thirty-three percent of businesses plan to hire low-skill workers and invest in training them for high-skill jobs.
  • Hiring Younger Interns –In order to encourage the next generation to pursue STEM-related fields (science, technology, engineering and math) and other in-demand positions, many employers plan to start building relationships with younger students. The research shows one quarter (25 percent) plan to hire high school students as interns over the next year.
  • Increasing Wages at All Levels – In order to retain and attract top talent, 83 percent of companies expect to increase compensation for existing employees – on par with 82 percent last year – while 66 percent will offer higher starting salaries for new employees – up from 64 percent last year. “While employees have been more willing to pay a premium for high-skill labor, they now have to pay more competitive wages for entry-level position,” Matt Ferguson, CEO of CareerBuilder, said in a “Workers are gaining leverage.”
  • Reaching Beyond U.S. Borders –Employers will continue to look at talent pools outside the U.S. to help fill labor deficits. Nearly 1 in 5 (19 percent) say they will hire workers with H-1B visas in 2016, which will enable them to employ temporarily foreign-born workers for specialized occupations.
  • Diversifying Management –Companies are expanding demographics in their company leadership. The research shows that 55 percent of employers plan to hire or promote more women for management roles, and 53 percent plan to do the same for minority workers. Forty-seven percent of employers plan to promote workers under the age of 30 into management roles.

Hot Areas for Hiring

Of the employers who plan to increase the number of full-time employees, the top areas they’ll be recruiting for include:

  • Customer Service – 32 percent
  • Information Technology – 29 percent
  • Sales – 27 percent
  • Production – 24 percent
  • Administrative – 20 percent
  • Marketing – 18 percent

At 42 percent, the study discovered that the West region is expected to hire the most full-time, permanent employees, followed by the South (26 percent), Midwest (34 percent) and Northeast (30 percent).

Small businesses are much more bullish about their financial prospects in 2016 and are looking to expand their staff.  Specifically, 27 percent of businesses with less than 50 employees plan to hire full-time, permanent employees, up from 20 percent last year. Additionally, 33 percent of businesses with 250 or fewer employees plan to hire full-time, permanent workers, up from 29 percent last year.

The research was based on surveys of 2,338 U.S. hiring and human resource managers.