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Tech Sector Will Lead Way in Hiring

Almost half of technology firms plan to increase their headcount during the next six months, in spite of lingering fears that the economy may be headed for a double-dip recession, according to a recent survey by the consulting firm Grant Thornton.

“As business continues to generate significant profits this provides the funding for investments in new and improved technology which in turn is fueling the optimism expressed by technology industry executives,” said Cal Hackerman, national managing partner of Grant Thornton’s technology industry practice.

Though a majority (51 percent) of the 516 senior financial executives at American firms polled in the survey, which included 46 tech companies,  expect to keep their employee numbers steady, the technology firms were more likely to add staff (46 percent vs. 37 percent).

Both groups believe that the U.S. economy will remain flat over the next six months. But the tech executives were slightly more upbeat about the prospects for the economy as a whole, with more than 60 percent predicting it would recover by the end of 2011.

“The technology industry was among the first to emerge from the economic downturn,” Hackerman said. He predicted that the tech sector would continue to expand through the next year.

Their optimism and continued expansion notwithstanding, though, the tech sector was also on pace with the broader survey in their fears of a double-dip recession, with 59 percent expressing concern. They were, though, more optimistic than their peers in other sectors about their own firms’ prospects with 63 percent expecting things to improve vs. 46 percent of all executives.

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Reach BusinessNewsDaily senior writer Ned Smith at nsmith@techmedianetwork.com. Follow him on Twitter @nedbsmith.

Ned Smith
Ned Smith

Ned was senior writer at Sweeney Vesty, an international consulting firm, and was Vice President of communications for iQuest Analytics. Before that, he has been a web editor and managed the Internet and intranet sites for Citizens Communications. He began his journalism career as a police reporter with the Roanoke (Va.) Times, and was managing editor of American Way magazine and senior editor of Us. He was a Captain in the U.S. Air Force and has a masters in journalism from the University of Arizona.