Seven Major Job Trends for 2007
By Matt Ferguson, CEO, CareerBuilder.com
Is finding a new job on your list of New Year's resolutions?
The market may be in your favor.
Recent reports from the U.S. Labor
Department indicate that while the expansion of the U.S.
economy is slowing, it is doing so at a reasonable pace, and
inflation has steadied. A moderated, yet stable, job market is
expected to carry over into 2007 with gains that will remain
strong enough to keep the unemployment rate in check.
University of Michigan economists predict the United States
will create 1.5 million jobs in the next 12 months. According
to CareerBuilder.com's annual job forecast, 40 percent of
hiring managers and human resource professionals operating in
the private sector report they will increase
their number of full-time, permanent employees in 2007,
compared to 2006. Eight percent expect to decrease headcount
while 40 percent expect no change. Twelve percent are
Employers are expected to become more competitive in their
recruitment and retention efforts in the New Year as the pool
of skilled labor shrinks and productivity growth plateaus.
Forty percent of employers report they currently have job
openings for which they can't find qualified candidates.
This bodes well for workers who are likely to benefit from
more generous job offers, more promotions, more flexible work
cultures and other major trends identified for 2007:
No. 1: Bigger Paychecks
To motivate top performers to join or stay with their
organizations, employers plan to offer better compensation
packages. Eighty-one percent of employers report their
companies will increase salaries for existing employees.
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.
Thirty-five percent will raise compensation levels by 3
percent or more while 17 percent will raise compensation
levels by 5 percent or more.
No. 2: Diversity Recruitment -- Hispanics Workers in
Understanding the positive influence workforce diversity has on overall business
performance, employers remain committed to expanding the
demographics of their staffs. With the Hispanic population
accounting for half of U.S. population growth since 2000,
according to the U.S. Census Bureau, and buying power
growing 8 percent annually, one-in-ten employers report
they will be targeting Hispanic job candidates most
aggressively of all diverse segments. Nine percent plan to
step up diversity recruiting for African American job
candidates while 8 percent will target female job
Half of employers recruiting bilingual employees say
English/Spanish-speaking candidates are most in demand in
No. 3: More Flexible Work Arrangements
Work/life balance is a major buzzword among U.S. employers
as employees struggle to balance heavy workloads and long
hours with personal commitments.
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.
No. 4: Rehiring Retirees
Employers continue to express concern over the loss of
intellectual capital as Baby Boomers retire and smaller
generations of replacement workers fall short of labor
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.
No. 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.
Thirty-five percent of employers plan to provide more
promotions and career advancement opportunities to their
existing staff in the New Year.
No. 6: Better Training
In light of the shortage of skilled workers within their
own industries, the vast majority of employers -- 86
percent -- report they are willing to recruit workers who
don't have experience in their particular industry or
field, but have transferable skills.
Seventy-eight percent report they are willing to recruit
workers who don't have experience in their particular
industry or field and provide training/certifications
No. 7: Hiring Overseas
Companies continue to drive growth by entering or
strengthening their presence in global markets. Thirteen
percent of employers report they will expand operations and
hire employees in other countries in 2007. Nine percent are
With China's economy expanding at 10
percent annually and India's at 8 percent, these two
countries are particularly attractive to U.S.
Twenty-three percent of employers recruiting overseas
report they will hire the most workers in China and 22
percent will hire the most in India.
This survey was conducted online by Harris Interactive on
behalf of CareerBuilder.com among 2,627 hiring managers and
human resource professionals (employed full-time; not self
employed; with at least significant involvement in hiring
decisions), ages 18 and over within the United States
between November 17 and December 11, 2006. Figures for age,
sex, race/ethnicity, education, region and household income
were weighted where necessary to bring them into line with
their actual proportions in the population. Propensity
score weighting was also used to adjust for respondents'
propensity to be online.
With a pure probability sample of 2,627, one could say
with a ninety-five percent probability that the overall
results have a sampling error of +/- 2 percentage points.
Sampling error for data from sub-samples is higher and
varies. However that does not take other sources of error
into account. This online survey is not based on a
probability sample and therefore no theoretical sampling
error can be calculated.
Matt Ferguson is CEO of CareerBuilder.com. He is an
expert in recruitment trends and tactics, job seeker
behavior and workplace issues.
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