Annually, Management Recruiters International, Inc. (MRI), corresponds with decision makers to assess their hiring plans. Although down from the record-setting heights of recent years and from the first half of 2001, there is still a healthy demand for mid-to-upper level managers, high-level executives, professionals, sales and marketing people and technical workers, according to the latest hiring survey. Of the nearly 4,700 executives surveyed, 43.8 percent indicated plans to make additions to their staffs during the second half of 2001, down by 15 points from first half 2001. Another 45.2 percent plan to maintain their current staff sizes, up by 9.9 points, and 11 percent plan decreases, up by 5 points. The numbers we are seeing now are comparable to what we saw in the mid-nineties, which we considered very healthy at that time. Employers are still experiencing candidate shortages for key positions, but both candidates and hiring companies are taking a cautious, wait-and-see attitude until they feel more confident about the economy.
New England leads the nation in new hires projected with 52.4 percent anticipating the addition of new staff, although all regions of the country are experiencing a drop in the number of companies planning to add staff:

Second Half 2001 % intent to increase hiring

+/- Six Months % intent to increase hiring change vs. January 2001

+/- Six Months % intent to increase hiring change vs. June 00

New England Middle Atlantic West Southwest Midwest North Central South Atlantic South Central

52.4% 51.5% 45.9% 44.8% 43.4% 41.7% 40.3% 35.6%

-14.3% -13.8% -18.4% -23.2% -13.2% -11.3% -16.8% -11.9%

-17.2%  -6.1% -19.5%  -6.3%  -3.9%  -7.7%  -9.3%  -6.8%

For the past two years, we've seen no large regional differences in projected new hires. With this survey we're again seeing several regions lagging behind, although even the South Central region with the lowest level is still over 35 percent. And in the Southwest region, where the largest drop-off from last half occurred, the intent to hire over the next six months exceeds the national average.

Many Industries Plan Increases, Others Focus on Maintaining
A substantial number of companies within key industries indicate plans for new hires over the next six months, while others show marked increases in maintaining current staff sizes. The percentage of the sample in each industry intending to increase, maintain and decrease hiring during the next six months is as follows:

Industry Pharmaceuticals Telecommunications Construction Information Technology Retail Trade Food Insurance Healthcare Printing Energy Financial Services Electronics Real Estate Transportation Metals Machinery Chemicals

Increase 62.0% 53.4% 53.1% 48.9% 48.7% 47.0% 46.6% 42.5% 42.4% 42.2% 40.3% 39.8% 38.5% 36.6% 35.9% 31.3% 28.3%

Maintain 31.8% 33.3% 39.5% 39.7% 41.6% 44.7% 46.6% 50.2% 51.5% 44.4% 46.8% 46.0% 60.0% 50.6% 48.5% 53.0% 53.1%

Decrease   6.2% 13.3%   7.4% 11.5%   9.7%   8.3%   6.8%   7.3%   6.1% 13.3% 12.9% 14.2% 1.50% 12.8% 15.5% 15.7% 18.6%

Companies recognize that candidate shortages still exist and that they cannot indefinitely postpone hiring the talented people they need to stay competitive. In many industries today, even as they lay people off in one area, they are hiring new people in other areas. They are also making greater efforts to retain the good people they have on staff because good opportunities always exist for the best people. The survey was conducted in accordance with the professional and ethical standards of the American Marketing Association and the Marketing Research Association.

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