Hiring intentions rising among Eastern Iowa employers

A survey of area employers by Cambridge Staffing found 64 percent expect to hire in the first quarter of 2011.

The findings were an improvement from the last quarterly survey, which found 54 percent expecting to hire in the next quarter.

Cambridge surveyed 53 Eastern Iowa companies that employ more than 10,000 total employees in its 47th quarterly survey.

Hiring intentions were stronger among manufacturing companies, with 70 percent expecting to hire. Among service businesses, 61 percent expect to hire in the first quarter.

None of the companies planned to lay off employees during the first quarter.

In previous surveys for the first quarter, 20 percent typically expected to add staff, and 15 percent expected to reduce staff.

“The economy seems to be gradually rebounding in both hiring and expansions,” Cambridge Staffing General Manager Jan Collins said. “We're still concerned about a possible double-dip (recession) in the first quarter, but signs are certainly encouraging at this point.”

Cambridge Staffing owner Mike Cambridge said entry wage jobs are going to older workers with some experience, raising the question of whether the minimum wage and benefits are too high.

“Over the long haul we have to figure out a way to cut prices so we can be worldwide competitors in order for jobs to grow,” Cambridge said.

The survey found hiring companies expecting to pay an average wage of $11.01 per hour for new workers, while manufacturing companies expect to pay new employees an average of $9.51 per hour.

For all of 2011, the survey found 64 percent of companies expected to hire. That was up from the last quarterly survey, when 59 percent of employers expected to add employees over the next 12 months.