Employment growth over the next year will be modest, according to the latest Duke/CFO Magazine Global Outlook survey, which is conducted quarterly.
Respondents expect domestic employment to increase by 0.7% over the next year, down from the 1.2% growth they expected last quarter and the 2% growth they expected in December. At that rate, the economy will create fewer than 100,000 new jobs each month.
The survey, which was released today, asked 806 U.S. CFOs from a range of industries about their expectations for the economy.
"It's pretty discouraging," said Kate O'Sullivan, senior editor at CFO Magazine. "It's still growth, but very modest growth, and it's not going to make a dent in the unemployment rate. This is not going to reverse things for us quickly."
Companies are more pessimistic about hiring this quarter due to recent events that have caused them to be skittish, O'Sullivan said, like the European debt crisis, high oil prices and Japanese earthquake. Less optimism translates into less hiring.
Still, 21% of companies say they're in active hiring mode, with strongest demand occurring in the tech, retail/wholesale and energy industries. Companies will hire engineers, product developers, salespeople, and finance and accounting professionals.
"There are certainly segments of the economy that are growing and tech is one of those areas," O'Sullivan said. "Retail cut back at the lowest point of the recession and left money on the table -- they had some staffing up to do."
The demand for finance and accounting staff also isn't surprising given that there are many accounting changes on the horizon, O'Sullivan said. Companies are hiring accounting professionals who will be able to parse new regulations and make sure the business adheres to them.
While the news for job seekers is bleak, the situation is better for those who are already employed. The survey found that many companies are planning to or have already reinstated employment benefits and policies that were eliminated during the recession.
Among companies that cut employee training and development, 46% said those policies have already been or will be put back into place within the next year. In addition, 61% of respondents said weekly hours worked will increase back to pre-recession levels. Wages are also expected to increase 3% by the next year, according to the survey.
Write to Julie Steinberg