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Labor market forecast bleak; small biz still hiring

Mon, Apr 13th 2009 12:00 am
Confidence in the U.S. job market remains weak among employers, according to a survey by the Society for Human Resources Management.

SHRM's Labor Market outlook report for the second quarter of 2009 found that 70 percent of employers are concerned to some extent about the job market, down just 3 percent from the previous quarter.

Of the concerned respondents, 49 percent are somewhat pessimistic about job growth and increased job losses, and 21 percent are very pessimistic.

Additionally, 52 percent of the employers surveyed plan to maintain their current staffing levels, and 17 percent plan to cut jobs. Among companies with 500 or more employees, 30 percent plan to eliminate jobs.

In the first quarter of the year, 84 percent of employers surveyed either dismissed workers or refrained from hiring, showing a decline in hiring from the fourth quarter of 2008.

A separate survey reveals that small businesses are still planning to hire, but at a declining rate, and with fewer spots to fill.

TriNet Group Inc. found that 55 percent of small businesses intend to hire this year, down from 80 percent in November and December of last year.

Two-thirds, or 65 percent, of respondents who were looking to fill jobs said the current talent pool was better than normal.

If faced with reducing personnel costs, 31 percent of respondents said they would reorganize staff to ensure the correct individuals are in the right places.

Twenty-five percent would choose to lay off workers rather than reduce salaries and benefits. Twenty percent of those surveyed said they would reduce salaries and benefits for all or some employees to avoid layoffs.

The California human-resources outsourcing company surveyed more than 300 small businesses in the technology, financial-services and professional services sectors for its quarterly report.