Employers say white-collar job freezes are headed for a spring thaw
Filed under: Economy
As the stock market and some economic indicators keep trending higher -- along with the unemployment rate -- experts are increasingly championing the "jobless recovery" scenario. But there are some encouraging signs for white-collar workers. A survey of employers from human resources consultants Watson Wyatt says half the companies in its bimonthly poll -- about 200 large employers -- plan to roll back hiring and wage freezes they put in place as a response to the recession. Also, a third plan to roll back cuts in contributions to their 401(k) plans.
The survey found that of the 56 percent of employers who had frozen wages since the recession began, 54 percent plan to unfreeze them within the next six months; that's up from from 33 percent in August's survey and 17 percent in June. And 49 percent of companies that froze hiring expect a spring thaw: they said they plan to at least partially lift those freezes in the next six months, compared with 38 percent in August.
At least a portion of lost benefits will also come back. Among companies rolling back their 401(k) contributions, 70 percent will go back to their original level, while 13 percent will reset them to a lower level than before the recession. Another 17 percent of companies will base contributions on company profits.
But let's not read too much optimism into these numbers. While the employers are making recovery plans, one-fifth said they may have to do more layoffs in what's left of 2009 and even into 2010. So beware of those year-end pink slips.
And don't expect the holiday office party to come back yet; only 37 percent of companies will have one this year (ten percentage points less than last year) and 41 percent of those have cut the party budget.
"The general economic picture right now is definitely brighter than it was just a few months ago," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt, in a statement. "However, the recovery is uneven and most employers aren't fully convinced that the improvements they've seen are here to stay."
And another caveat: Watson Wyatt's survey concentrates on white-collar workers, so these results don't apply to manufacturing or blue-collar workers. Among manufacturing trades, the indicators are still weak-to-mixed. The same day this survey was released, we saw new home sales drop unexpectedly while durable goods orders rose.
So if you're an office worker, take heart: if you survive the next round of job cuts, things will be looking brighter next year. Maybe you'll even get a raise.
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Reader Comments (Page 1 of 1)
10-29-2009 @ 9:57AM
Hoxsie454 said...
This morning's report is very good news indeed. Now, we should all get to our congressmen and tell them not to extend the tax credit for home purchases and cut back on the stimulus funding which has not yet been put to use. We don't need or want to over stimulate or we will be right back in the dumps!!
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10-29-2009 @ 10:22AM
NIKITA said...
A spring thaw is unlikely. Stimulus jobs are not there, folks. Obama is trying to bolster his ratings without the facts. Obama has not reinvested in state of the art manufacturing and industrial strengths. We are no longer a production nation, relying on imports. This nation is in trouble, heavily in debt and spending every American's tax dollar. The middle-class cannot keep their heads above water. Service jobs lack security and pay. We are going backwards, not forward. Our days are numbered before we all go broke without inflationary control. Vote Obama far away.
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10-29-2009 @ 11:19AM
Paul said...
I would Not count on this one. All Real indications are that 2010 and 2011 will be worse years than the last 2. Artificial Prop of the Numbers will Not prove worthy of support and will be headed for at least 40 Percent Collapse by end of this year. Earnings reports are Bogus as well as the Current Stock numbers. Banks and Corporations are reporting a Profit Only because they are Laying off Workers and Restructuring. Also, it is found that Banks that received " Bailout " Money are reporting that as Profit as well. They also do what I call " Twiddle " the numbers to make things appear better than what they are just to Lure in Unsuspecting investors
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10-29-2009 @ 12:30PM
Mike said...
Sure, the thaw is coming and white-collar work will melt along with the last of the blue-collar crap left. All of the jobs will be in china and india and there you have it. All of these numbers coming from DC are BS and about half of reality.
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10-29-2009 @ 12:31PM
wantedmytrulove said...
MORE FOR THE RICH _______ SCREW THE POOR WORKERS
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10-29-2009 @ 12:33PM
wantededmytrulove said...
A Republican will screw ya every chance he gets
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10-29-2009 @ 12:47PM
AL said...
Of course the government and Wall Street are painting this rosy picture. They are counting on the fools to buy into the Christmas Holiday, as that is their Christmas. Smart people are not buying into the BS tht is coming out of the mouths of those that created this mess in the first place. Your kids don't need a huge Christmas and for you to be in deeper debt. Upper management is counting on you fools to bail them out, so they get to keep their jobs, and not yours. It's all about greed and those in charge not to take pay cuts or job losses. Senior Citizens got it stuck up their hineys when they cut inteest rates, and that was part of their retirement income and now they really expect the seniors to buy, buy, buy, but don't. Screw this administration and the thieves in it.
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10-29-2009 @ 1:08PM
Realist said...
Is it just me, or does it seem that our government and independent economic analysts are trying to...TALK US OUT OF THIS RECESSION with what has become a continuous flow of rosy outlooks. Don't buy into this horse crap. Only when Main Street stops hurting and bleeding job losses will I even start to believe this dribble. The majority of Americans I know are starting to believe the best policy is an ISOLATIONIST policy. Take care of the US #1 - stop Father Christmas foreign aid and work toward being 100% self sufficient.
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10-29-2009 @ 1:09PM
LBJ033 said...
WHITE COLLAR JOBS SET FOR SPRING THAW-THIS IS LIKE YOUR CHECK IS IN THE MAIL--MORE OBAMA PROPAGANDA-OR LIES
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10-29-2009 @ 4:28PM
Mr.yesman said...
The stiff is Dead
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