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Hiring Activity to Mark Four-Year High in August, SHRM LINE Report Predicts
 

   7/31/2014
 
ALEXANDRIA, Va. Hiring activity will reach a four-year high for August in both the manufacturing and service sectors, according to the Society for Human Resource Management’s monthly Leading Indicators of National Employment® (LINE) Report released today.

Roughly one-half of manufacturers (50.2 percent) and more than one-third of service-sector companies (35.8 percent) reported that they will add jobs in August. The report also showed a slight hiring rate increase compared with a year ago for manufacturing (0.3 percent) and the service sector (0.7 percent).

According to the report, the month of August also marks the third consecutive month that hiring has reached a four-year high for both sectors in the LINE survey.

The SHRM LINE Report, based on a survey of human resource professionals, predicts employment activity for the coming month, about 30 days before statistics on employment for the same time frame are available from the U.S. Bureau of Labor Statistics.

HR professionals’ recruiting challenges for key positions also hit a four-year high for July in both the manufacturing and service sectors.

“The continued increases in hiring are also boosting recruiting difficulty,” said Jennifer Schramm, manager of workforce trends at SHRM. “As more employers compete to fill their key jobs, difficulty finding candidates with the right skills and experience is rising.”

In July, more employers also raised pay for new hires compared with a year ago. A net total of 8.8 percent of manufacturing sector respondents reported increasing new-hire compensation in July, an increase of 2.7 points compared to July 2013. For the service sector, 12.3 percent of companies reported increasing new-hire compensation, up 4 points from a year ago.

“We may finally be seeing recruiting difficulty impacting wages, which have remained relatively stagnant well into the recovery,” Schramm explained. “More HR professionals in both sectors are reporting that they had to increase new-hire compensation compared with the same time a year ago."

Still, however, the index’s overall data shows most organizations are keeping new-hire compensation relatively flat.

The LINE Report provides a snapshot of month-ahead hiring expectations and examines difficulty in recruiting top-level talent, new-hire compensation and job vacancies. Respondents include HR professionals from private service-sector companies and manufacturing companies. Together, these sectors employ more than 90 percent of U.S. private-sector workers.

Media: To read the full SHRM LINE Report, visit www.shrm.org/line. The Jobs Outlook Survey Report is available at www.shrm.org/jos. Follow SHRM Research on Twitter @SHRM_Research.

The SHRM LINE Report is typically 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 a month later by the Bureau of Labor Statistics’ Employment Situation Report.

For more information or an interview with a LINE researcher, contact Vanessa Gray of SHRM Public Affairs at 703-535-6072 or Vanessa.Gray@shrm.org.

About the Society for Human Resource Management
Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org and follow us on Twitter @SHRMPress.
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