2012 Job Market Looking Good

Since 2008, the job market has been brutal, but the slow and steady climb to recovery has begun. The 2012 job market is actually looking good.

A recent poll of more than 3,000 hiring managers showed that 23 percent plan to hire full-time, permanent employees in 2012, while only 16 percent plan to cut back staff levels. These numbers are a big improvement from the end of 2008, when just 14 percent of employers planned to hire new employees in the coming year.

Small businesses on the upswing
Small businesses provide about half of the private-sector jobs in the U.S. and have accounted for about 65 percent of the total job creation in the past two decades—and their job market is looking even better in 2012.

Sixteen percent of companies with 50 or fewer employees plan to bring on additional full-time staff this year. Better still, 20 percent of companies with fewer than 250 employees and 21 percent of companies with fewer than 500 employees also reported plans to add staff this year.

Job Market Trends for 2012
Here are five job trends you can expect to see throughout 2012:

1. Workers will seek new opportunities: As the economy improves, workers will begin looking for better job opportunities. Thirty-four percent of employers surveyed said that voluntary turnover was higher at their organizations in 2011 than in 2010, and it’s expected to rise in 2012.

2. Employers will increase salaries to keep their current employees and attract new ones: Probably due to last year’s higher turnover, companies will spend more money in 2012. 62 percent of employers reported plans to increase employee compensation next year, while 32 percent plan to increase starting salary offers to new workers.

3. The recovery will be uneven: Certain industries, job functions and geographic areas will recover faster than others. For example, employers need highly skilled workers, so jobs in engineering and IT will be plentiful in the coming year. More employers in the West reported plans to hire in 2012 than did employers in the Northeast, Midwest and South.

4. Employers will try to close the skills gap: The skills gap will continue to be a hot topic in 2012. In order to meet their growing need for employees in high skills areas, 38 percent of employers plan to provide workers and new hires with on-the-job training.

5. Employers will pursue diversity: Twenty-nine percent of employers said they’d focus on workforce diversity in 2012. Twenty percent plan to recruit more African-American and Hispanic workers, while the same number reported plans to recruit women. Forty-four percent plan to concentrate on hiring more bilingual employees.

At CornerStone Staffing, we always have our fingers on the pulse of the employment marketplace. Need help making staffing plans for this year? Contact us today!

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