The employment market outlook remains strong for the second half of 2019; However, employers must be willing to compete for the best talent.
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 those trends impact their hiring decisions.
Going into the second half of 2019, the employment market remains positive with little concern about recession in the short-term.
Forty-six percent of survey respondents said their employment markets are “trending up” in the third quarter of 2019, and only 10% forecast a downward trend in employment activity. Additionally, 97% of respondents reported that they do not currently live in an area in recession. So, it appears in the short term recession is not a concern for most business leaders. The long-term outlook, however, shows some signs of caution within the next two years.
The top segments hiring in the third quarter of 2019 include
- General Labor (Industrial): 36%
- Skilled Labor (Industrial): 32%
- Administrative/Office Clerical: 20%
- Accounting/Finance: 9%
- Healthcare: 6%
Do you foresee your country entering into another recession?
- 3 to 6 Months: 95% say no
- 6 months to 1 year: 76% say no
- Two years: 53% say no
In a job seeker’s market, compensation is a key differentiator for businesses competing for skilled talent.
Skilled workers hold all the cards as businesses continue to struggle to find enough workers with the right mix of experience and expertise. In fact, more than three quarters (76%) of business leaders say it’s either “Somewhat Difficult” or “Very Difficult” to recruit for and fill their open positions. Compensation has become a key differentiator for job seekers as wages are expected to increase over the next three months, according to 36% of survey respondents.
For those who expect wages to increase, the raises will be:
- Performance Based: 38%
- Standard Cost of Living: 18%
- Both Performance and Cost of Living: 36%
In a separate poll conducted by Express, business leaders were asked how much of a pay increase they would consider to retain a star employee. Nearly 40% said they would offer up to 10% of the employee’s current pay.
Wages aren’t the only reason companies have job openings—benefits, opportunities for advancement, and other factors play a major role.
The most qualified candidates can be more selective about the jobs they accept—especially in a job market where they know they will be well paid no matter where they go. To recruit top talent today, businesses must rethink their compensation packages to include a broader range of benefits that go beyond competitive wages, including opportunities for training and development, more desirable work environments, or flexible scheduling.
Top 5 factors that stop applicants from accepting a job offer:
- Low pay: 28%
- Not the perfect fit: 25%
- Lack of advancement/opportunity: 13%
- Lack of benefits: 12%
- Inflexible schedule: 9%
What economic growth do you foresee in the coming future? How has the business climate affected your company? Let us know in the comments section below!