Not a Member?  Become One Today!

 
Hiring Expected to Hit Multiyear High for Manufacturing and Service Sectors in May, SHRM LINE Report Predicts
 

   5/1/2014
 
Hiring activity in May will reach a four-year high in manufacturing and a three- year high in the service sector, according to the Society for Human Resource Management’s monthly Leading Indicators of National Employment® (LINE) Report, released today.

A net of 52.9 percent of manufacturers and 38.9 percent of service-sector companies will add jobs in the month of May. 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.

“This hiring increase, however, is not translating into higher compensation packages for new hires,” said Jennifer Schramm, manager of workforce trends at SHRM.

A net total of just 4.5 percent of manufacturing respondents reported increasing new-hire compensation in April, a decline of 3.5 points from April 2013. In the service sector, a net total of 6.6 percent of companies increased new-hire compensation in April, down 1.3 points from a year ago.

“HR professionals are also reporting a rise in recruiting difficulty in both sectors in April, a sign that the labor market may be heating up,” Schramm said.

Recruiting difficulty for both sectors hit a four-year high in April. A net of 17.5 percent of manufacturing respondents had more difficulty recruiting for open positions in April, up 4.9 points from April last year. A net of 18.4 percent of service-sector HR professionals had more difficulty recruiting in April, compared to a year ago. 

Additionally, hourly job vacancies fell in both sectors compared with a year ago, while salaried job openings fell in manufacturing and rose in the services industry.

The LINE Report provides a snapshot of month-ahead hiring expectations and examines new-hire compensation, difficulty in recruiting top-level talent and job vacancies. Respondents include HR professionals from over 500 private service- sector companies and 500 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 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. Leading Indicators of National Employment
Copyright Image Obtain reuse/copying permission