Economic Rebound? Not So Fast

From Cheezhead

Wed, Jun 3, 2009

A rebound from the current economic recession may not come as quickly as some had hoped.

A new survey from Dice Holdings, Inc.
found that three in four recruiters and hiring managers have scaled
back their hiring plans for the next six months because of the current
economy.

"These results reflect what we hear from our customers on a daily
basis," Scot Melland, chairman, president and CEO of Dice Holdings,
said. "While hiring managers and recruiters generally believe the
economy is no longer falling off a cliff, these survey results indicate
that employers have yet to take the tangible steps which will improve
the labor market."

The survey found that 31 percent of respondents believe layoffs are
likely within the next six months, which, despite the amount of job
cuts already seen this year, is only a slight decrease from the 34
percent of respondents who expected job cuts at the end of 2008.

The survey further found that almost 60 percent of respondents have
seen a substantial increase in the number of candidates who are
applying for open jobs. For those who were lucky enough to recently be
hired, 51 percent say their salaries will be the same, while 38 percent
say they will have lower salaries when compared to last year.

"Companies need to figure out smart ways to balance workforce needs
with budgetary constraints," Melland said. "If not, when the economy
turns upward - and it will - employers will be faced with the risk of
an exodus of talent. There may be few green shoots in today's labor
market, but professionals understand and act quickly when green grass
is right around the corner."

From May 18 to 22, Dice surveyed about 1,900 respondents from U.S. companies and recruiting
firms from every region of the country who hire or recruit a variety of
professionals. Of the respondents, 80 percent were companies that
recruit for their own needs, while almost 40 percent had more than 500
employees.