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The South continues to perform better than other regions in terms of hiring, seeing the benefits of growth in healthcare and energy. Sixteen percent of hiring managers in the South plan to increase their full-time staff, compared to 14 percent in all other regions. The Northeast, plagued by losses in banking and financial jobs, is expecting the largest decrease in headcount among the regions. Nineteen percent of hiring managers expect to trim staffs compared to 14 percent in the Midwest and West and 12 percent in the South.

Sixteen percent of employers with more than 250 employees expect to add full-time, permanent positions in the next three months compared to 15 percent of those with 51 to 250 employees and 12 percent of those with 1 to 50 employees.

Layoffs

Twenty-two percent of hiring managers reported there were layoffs at their locations in the first quarter of 2009, up from 11 percent this time last year. Twelve percent anticipate there will be layoffs in the next three months while 16 percent are unsure. Seventy-two percent expect no change.

Looking at a subset of managers specializing in human resources, nearly half (48 percent) believe their organizations will benefit from the economic stimulus in terms of getting more business. Twenty-three percent said their companies are planning to bring back workers who were laid off once the economy turns around.

Compensation

Tightened budgets are restricting pay increases and, in some cases, resulting in pay reductions. Forty-two percent of employers expect to increase salaries for full-time, permanent employees in the second quarter, down from 70 percent this time last year. Twenty-nine percent estimate the average raise to range between 1 and 3 percent, 12 percent expect an average raise of 4 to 10 percent while 1 percent expect raises to be 11 percent or more. Forty-six percent of employers anticipate no change in compensation levels, 7 percent expect a decrease and 5 percent are unsure.

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