To provide accurate and timely employment forecasts for business leaders, Express Employment Professionals International Headquarters conducts an ongoing Job Insights survey to track quarterly hiring trends across a wide range of industries.
Express surveyed business owners, decision makers, and human resource professionals about the overall hiring trends in their markets and how they impact their hiring decisions.
First quarter 2018 optimism carries over into the second quarter.
Quarter over quarter, optimism for 2018 remains steady with 91% of respondents who expect either an upward trend in hiring needs or to at least maintain current levels during the second quarter. Only 8% expect employment activity to trend down—the lowest percentage in four quarters. In fact, 93% of companies represented in the survey do not plan to eliminate any positions in the surveyed segments during the second quarter.
The top segments hiring in the second quarter include general labor (industrial), skilled Labor (industrial), administrative/office clerical, and accounting/finance. Additionally, the segments creating the most new positions include engineering, marketing, IT, accounting and finance, and skilled labor.
Talent with the right mix of experience and expertise is at a premium.
A recurring theme across the past four quarters—access to skilled workers—continues to plague businesses. In a job seekers’ market, businesses must go the extra mile and be more creative in the way they recruit top talent. Only 18% of respondents said all their positions are filled—a 2% decrease quarter over quarter. Additionally, since the second quarter of 2017, the number of businesses that say it is “somewhat” or “very” difficult to fill positions has increased from 65% to 75%.
Survey respondents noted that the top reasons their jobs go unfilled include:
- Lack of applicants in general (37%)
- Lack of applicants with experience (36%)
- Lack of applicants with hard skills (24%)
Year over year, the challenge of finding skilled workers is only becoming more difficult. Although the economy appears to be growing healthier every day, if we don’t find a practical way to address the ever-widening skills gap, that forward momentum could come to an abrupt stop.
Economic indicators show signs of improvement for stagnant wages.
Despite the improving health of the economy during the past several years, wages for most segments of the workforce have remained stagnant. However, the tide is beginning to turn as a tighter labor market, economic confidence, and lower taxes may finally help drive higher wages for many workers.
Over the next three months, 40% of business leaders expect wages to go up, an 8% increase over the second quarter 2017, and 59% expect wages to stay the same. Only 1% of companies expect wages to decrease over the next three months.
What economic trends do you see in your market? How is the competitive job market affecting businesses? Let us know in the comments section below.