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Talent Shortages Ignite Relo Boom

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By Steve Cook

RISMedia, June 1 2011—The disparity between available jobs and skilled talent has sparked companies to adapt to a more competitive market and nearly half of hiring managers and recruiters say they have started to recruit talent from geographies outside their local market due to talent shortages, promising a boost in real estate relocation services.

A new national survey by Dice Holdings, Inc. (NYSE: DHX), a leading provider of specialized career websites for professional communities found that slightly more than half (51%) of employers and recruiters anticipate hiring more professionals in the second half of 2011 than in the previous six months. These survey results suggest the U.S. labor market remains on a favorable trajectory, particularly when the stronger levels of hiring experienced in the first half of the year are taken into account.

At the same time, paychecks are starting to be positively impacted, as 41% of hiring managers and recruiters indicated salaries for new hires are rising, compared to just 29% who felt that way six months ago.

For those planning on making more hires in the second half of 2011, 48% project they will add up to 10% more employees compared with the first half of 2011, while 29% plan to increase hiring by 11-20%.

Talent shortages drive nearly half of hiring managers and recruiters to seek professionals outside their local markets. This emerging phenomenon was more pronounced for companies headquartered in the East, Midwest and South, as compared to those in the Northeast and West.

Companies expecting a step-up in hiring in the next six months represented a broad spectrum of industries, including energy, technology, telecom, media, Internet, distribution, financial services, consulting and retail.

The Dice survey confirms a January and February survey by Atlas World Group that found expectations for relocation volumes and budgets continue to improve over 2009. The numbers reflect a greater optimism than seen in 2010, similar to 2004 post-recessionary expectations.

Nearly a third of companies expect 2011 relocation volumes to increase, with one-fourth or more firms expecting budget increases as well. Additionally, far fewer firms expect decreases in volumes and budgets compared to 2009 and 2010.

The percentages of firms that expect increases in volumes and budgets have risen to non-recessionary levels across company size. The percentages expecting further cuts have fallen near or below these levels as well, indicating the recovery that began in 2010 is likely to continue in 2011.

• The median number of relocations by mid-size firms increased in 2010, returning to the average range (20-49) reported in 2002-2007 after falling to “10-19? in 2008-2009. However, the median range for large firms remains “100-199? for the third year in a row, down from “200-399? reported in 2002-2007.

• About a third of manufacturing/processing and for-profit service firms reported increased relocation volumes in 2010, and over a fourth saw budget increases. Their expectations for 2011 are similar: roughly a third expect increases in volumes and budgets, and over half expect stability.

• Over a third of international and regional firms reported relocation volumes increased in 2010, compared to only about one-fourth of national firms. International firms are most likely to have reported budget increases: one-third compared to under one-fourth of regional and national firms. International firms are also most optimistic; about one-third expect further increases to volumes and budgets this year, compared to roughly one-fourth or less of regional and national firms.

At the same time, paychecks are starting to be positively impacted, as 41% of hiring managers and recruiters indicated salaries for new hires are rising, compared to just 29% who felt that way six months ago.

For those planning on making more hires in the second half of 2011, 48% project they will add up to 10% more employees compared with the first half of 2011, while 29% plan to increase hiring by 11-20%.

For more information, visit www.realestateeconomywatch.com.

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