Employers eager to hire

But Utah firms may have trouble filling jobs

Published: Monday, Dec. 11, 2006 9:01 p.m. MST
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Utah employers say they want to build staff numbers in the near term, but whether they'll be able to follow through is another matter, according to a new survey from staffing services company Manpower Inc.

The Manpower Employment Outlook Survey found that nearly half (47 percent) of employers polled in the Salt Lake area expected to hire more workers during the first quarter of 2007. Fifty percent said they would maintain current staff sizes, while 3 percent said they probably would cut back during the quarter.

The Salt Lake employer outlook was Manpower's eighth best in the nation, according to Manpower Utah spokesman Robert Katz. Manpower's Employment Outlook surveys more than 14,000 employers in 460 markets across the country.

The new survey continues a trend of optimism among Utah employers, Katz said. But, optimism aside, Katz said employers are facing the reality of a shallow labor pool.

"This just continues the trend from the fourth quarter of 2006, where employers have openings and would like to increase their staff sizes," Katz said. "That's what their plans are. Now, where they get these employees is another matter."

With unemployment at historic lows — 2.5 percent at last count — Katz said companies will have to work to lure quality employees.

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"It is a struggle, but I think that more people are moving into our state to help fill some of these jobs," he said. "The jobs are here, and they're not going away. But the companies that make their work sites the most attractive are the ones that will attract the employees."

Statewide, 36 percent of employers surveyed said they planned to add to their payrolls during the next quarter, the Manpower survey said. About 60 percent said they'd maintain current levels, while two percent said they expected to make cutbacks.

In both the Ogden and Orem markets, 30 percent of employers polled expected to hire more workers next quarter. Sixty-seven percent of Ogden employers polled said they would keep current staffing levels. None expected staff reductions.

In Orem, 60 percent of businesses polled said they would hold steady in terms of staffing. Three percent predicted layoffs.

Utah's results were far more optimistic than Manpower's broader, national poll, which found that 23 percent of employers polled expect to add to their payrolls during the first quarter of 2007, while 11 percent expect to make staff reductions. Sixty percent expect no change in the hiring pace.

The report marks the 12th straight quarter that more than 20 percent of companies surveyed said they plan to add to their staffs. But it would be the second straight quarter in which the predicted rate of hiring has fallen.

It is too early to tell whether the national dip in hiring intentions will turn into a trend, said Jonas Prising, president of Manpower North America. Companies on the whole still seem to be stable, he said.

"They are not having extensive hiring plans, but they're also not engaging in extensive layoffs," Prising said.

For the coming quarter, Manpower said job prospects look good in mining, construction, manufacturing, transportation/public utilities, finance/insurance/real estate, education, services and public administration. Employers in wholesale/retail trade voiced mixed hiring intentions.

Contributing: Associated Press

E-mail: jnii@desnews.com

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 (Deseret Morning News graphic)
Deseret Morning News graphic