The strengthening labor market and a low unemployment rate (3.9 percent in July) have led to intense competition among employers.
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That’s good news for American workers, according to CareerBuilder’s midyear job forecast report, which estimates 58 percent of United States employers plan to offer raises by the end of 2018 to retain qualified workers.
For the report, CareerBuilder used survey data representative of 1,023 hiring managers and human resource managers and 1,014 full-time workers across a variety of industries and company sizes in the private sector.
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The surveys were conducted online by the Harris Poll between June 21 and July 16.
According to the data, more than 22 percent of workers reported they’re likely to change jobs before the year ends
“Low unemployment and increasing skills gaps continue to plague employers who are struggling to fill roles at all levels within their organizations,” CareerBuilder CEO Matt Ferguson said in a company news release. “Fifty percent of U.S. employers reported that it is taking them longer to fill jobs today compared to any other period of time — a trend that is ultimately giving job seekers more leverage.”
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Key findings from the report
As aforementioned, 58 percent of employers plan to give out raises by the end of the year, and 24 percent of companies said pay bumps will be 5 percent or higher. Starting salaries are also expected to increase for 45 percent of U.S. companies, according to the report.
In the second half of 2018, 63 percent of U.S. employers said they plan to hire full-time workers, up from 60 percent last year.
And 40 percent of employers said they plan to hire temporary or contract employees, down from 50 percent in 2017.
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To seem more attractive to employees, many employers are also adding perks like casual dress codes, employee discounts, option to work remotely, extra paid time off and more.
The top industries hiring in the second half of 2018 include customer service, sales, information technology, product development and business development.
More from CareerBuilder’s report at careerbuilder.com.