Iowa employers are growing more pessimistic than they were three months ago, finds the fourth-quarter results of the Hamilton Hiring Survey.
Among the respondents, 40 percent are either somewhat or very optimistic about overall job growth, a decline from 47 percent in the third quarter. The survey also reveals that there is clear growth in the number of companies that do not plan to change the number of their employees, and the amount of companies that plan to add jobs declined.
"Nationally, confidence among U.S. small businesses dropped to a 13-month low in August," says Hamilton Group President and staffing expert Tom Hamilton. "However, we are seeing better hiring resiliency among Iowa employers. Although we're seeing the hiring outlook decline, survey results show Iowa is not reflecting the same depth of pessimism seen in many other areas of the country."
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In fact, Iowa's unemployment rate has slightly grown from 6 percent since July to 6.1 percent in August, says the Iowa Workforce Development. The unemployment rate was 6.2 percent a year ago, which was lower than the national unemployment rate at 9.1 percent.
Of the jobs that are believed to be added, the roles will be divided between mid-level positions and entry-level positions. More entry-level positions will especially be created, respondents say, in the final months of 2011, likely because much of the seasonal retail and hourly work available in the fourth quarter. Respondents indicate only 8 percent of the new hires would work at a senior level.
Thirty-five percent of respondents say they are neither optimistic nor pessimistic, compared to 29 percent in the third quarter. This is largely because of the uncertainties in health care reform and costs, government budget issues and business, respondents say.
"They are clearly taking a wait and see approach because of these uncertainties," Hamilton says. "As all three of the issues identified are not likely to be resolved within the next few months, we will likely see these concerns continue to be a drag on job growth into 2012."
Job growth optimism was highest with companies that have between 100 and 500 workers while companies that have between five and 100 workers are the most pessimistic.
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