CareerBuilder: Midwestern Employers More Likely To Downsize In 2014

Matt Ferguson, CEO of CareerBuilder | Courtesy of Creative Commons
CareerBuilder CEO Matt Ferguson (left) says many companies are currently reluctant to add jobs in 2014. | Courtesy of Creative Commons

Debt issues and negotiations might factor into hiring decisions for almost 25 percent of companies in 2014, according to CareerBuilder’s annual forecast.

The Midwest had the largest number employers who were expecting to downsize their staffs. The report indicates that 24 percent of employers plan to add full-time, permanent staff in the upcoming year, which is on par with 2013. However, 15 percent plan to reduce the headcount, which is up 10 percent from last year. The increase is on par with other regions.

“The general sentiment shared by employers whom CareerBuilder talks to every day is that there will be a better job market in 2014,” Matt Ferguson, CEO of CareerBuilder, said in the report. “What we saw in our survey was a reluctance to commit to adding jobs until the outcomes of debt negotiations and other issues affecting economic expansion are clearer.”

According to the report, almost 40 percent of small businesses indicated they were still working to recover from the recession and planned on staying cautious with hiring.

Those who are hiring plan on offering more. Forty-nine percent of employers plan to offer higher starting salaries, although most increases will be 3 percent or less. Rather than waiting for the right employee, almost 50 percent of companies said they are more willing to build one as they head into 2014. That is up 10 percentage points from last year.

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