Fewer companies plan to increase hiring in 2007

USA Today

Companies expect to hire a bit less in the beginning of 2007 than they did in late 2006, according to a survey out recently that points to a slight softening in the job market early next year.

Thirty-six percent of hiring managers said their companies planned to increase the number of people on their payrolls over the next three months, down from 38% who said they expanded their workforce in the prior three months, according to an online survey for USA TODAY and CareerBuilder.com by Harris Interactive. The survey was conducted recently and involved 2,627 hiring managers and human resource professionals.

Although the number does not point to a hiring plunge, it does suggest employers are scaling back.

One chief economist said the job market is strong but turning softer ever so slowly.

For many employers, that softening would be a welcome change. Two out of five hiring managers said they had job openings for which they could not find a qualified candidate.

In Compton, Calif., one company is having trouble hiring two cheese-makers. Even low-skill people are tough to find, the comptroller says.

He said it's tough to get workers.

Some firms are planning to increase pay to entice candidates to come to their companies. In the survey, 48% said they planned to offer raises in the next three months while 41% expected no change and 1% planned to cut pay. The rest were unsure.