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SHRM Report: March 2013 Hiring in Manufacturing and Service Sectors Expected to Reach Highest in Four Years 
 

3/7/2013   
 
 

SHRM Report: March 2013 Hiring in Manufacturing and Service Sectors Expected to Reach Highest in Four Years

Alexandria, Va. – The manufacturing and service sectors are expected to increase hiring in March 2013 compared to one year ago according to a report  from the Society for Human Resource Management (SHRM).

The report shows that the service-sector hiring rate will rise for the eighth consecutive month compared with a year ago. The manufacturing-sector hiring rate will dip slightly compared with a year ago though more than half surveyed do plan to hire workers this month.

The findings are detailed in the SHRM LINE Report Leading Indicators of National Employment®. The report provides a snapshot of month-ahead hiring expectations. (The Bureau of Labor Statistics jobs report analyzes past-month hiring trends.) Respondents include HR professionals from 500 private service-sector companies and 500 manufacturing companies.

The report shows three key data trends:

  • In the manufacturing sector, 58 percent of companies will hire while 8.9 percent will trim payrolls, leaving a hiring net of 49.1 percent. The remaining 33.1 percent expect to hold steady with no hiring or layoffs in March 2013; and
  • In the service sector, 50.7 percent of HR professionals said their company plans to hire workers while 8.6 percent will cut jobs, leaving a positive net of 42.1 percent. The remaining 40.7 percent are expected to hold steady with no hiring or layoffs in March 2013; and
  • On an annual basis—comparing March 2013 with March 2012—service-sector hiring will jump by a net of 17.4 points and manufacturing-sector hiring will dip by a net of -1.4 points.

“Salaried and non-salaried—or exempt and nonexempt—job vacancies rose in the manufacturing and service sectors to reach four-year highs,” said Jennifer Schramm, GPHR, and manager of workplace trends and forecasting at SHRM.

The SHRM LINE Report features the only national monthly employment indices capturing HR professionals’ past-month recruiting difficulty, a new-hire compensation index (and an index of exempt and non-exempt job vacancies in addition to the month-ahead hiring expectations index highlighted above).

The February 2013 (the most recent month available) new-hire compensation index shows a net total of 5.5 percent of HR professionals in the manufacturing sector increased hiring packages as did a net total of 14.5 percent in the service sector.

The recruiting-difficulty index for February 2013 (the most recent month available) shows a net of 8.5 percent of manufacturers had more difficulty filling key jobs. The change represents a drop of 9 points from a year ago.

A net total of 10.4 percent of service-sector HR professionals reported an increase in recruiting difficulty during February 2013. The number highlights an increase of 15.6 points from February 2012.

Highlights of SHRM LINE year-over-year findings:

Employment Expectations

Manufacturing

Service

In March 2013, the hiring rate will drop slightly in manufacturing and increase sharply in services compared with a year ago.

-1.4 points

 

+17.4 points

 

Recruiting Difficulty

 

 

In February 2013, recruiting difficulty fell in manufacturing and rose in services compared with a year ago.

-9.0 points

+15.6 points

New-Hire Compensation

 

 

In February 2013, the rate of new-hire compensation was down in manufacturing and up moderately in services compared with a year ago.

 -1.4 points

 +11.3 points

Source: SHRM Leading Indicators of National Employment

To read the full SHRM LINE Report, visit: http://www.shrm.org/line and click the “Latest LINE Report” button. Follow SHRM Research on Twitter @SHRM_Research. 

Media: The SHRM LINE Report is released at 8:30 a.m. Eastern time on the first Thursday of each month. The SHRM employment expectations index describes the same time period referenced approximately one month later in the Employment Situation Report issued by the Bureau of Labor Statistics.

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 About the Society for Human Resource Management

The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 260,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India. Visit SHRM Online at www.shrm.org and follow us on Twitter at www.twitter.com/SHRMPress.