FIN Survey: Half of Firms Keep Workforce Stable

Jason Sandefur

New hires declined overall in 2005 with 39.4% of companies reporting employee increases of 10.8% on average, down from the 48.2% who added personnel in 2004. About 8% of respondents trimmed their workforce by 12.1% on average, while 50% operated at current staffing levels.
The personnel results bested predictions for 2005, though the difference was modest.
Nearly 42% of companies plan to add more workers in 2006, while 56.4% intend to operate with their current number of employees. Just over 1% of respondents anticipate layoffs this year.
One-third of manufacturers added jobs in 2005 at an average rate of 10.3%, far below the 44% who boosted employee ranks in 2004. Manufacturers fell far short of the 48% who predicted workforce increases for 2005. Nearly 12% of manufacturers cut jobs at an average rate of 13.4%, while a 54.8% majority reported no personnel level changes.
Distributors were far more likely to hire in 2005, with 45.7% adding jobs at a rate of 10.9%. That figure was slightly lower than the 49.4% of distributors who increased their workforce in 2004.
Manufacturers are again betting on the future, with 45.2% planning to add jobs in 2006, while 52.4% will keep their workforce stable. Just over 39% of distributors plan job increases this year, with 58.7% expecting to operate at current staffing levels. \ �2006 FastenerNews.com