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Two SHRM Reports: Steady Job Growth Expected in April 2013 and Across Second Quarter
 

   4/4/2013
 

Two SHRM Reports: Steady Job Growth Expected in April 2013 and Across Second Quarter

Alexandria, Va. – Two reports from the Society for Human Resource Management (SHRM) show a positive hiring outlook for April 2013 as well as the second quarter overall.

Released today, the latest SHRM LINE Report (SHRM Leading Indicators of National Employment®), shows service-sector hiring will rise for the ninth consecutive month compared with a year ago. The manufacturing-sector hiring rate drop slightly compared with a year ago though half of those surveyed plan to hire workers during April.

The hiring momentum is expected to continue throughout the second quarter according to data from the SHRM Jobs Outlook Survey (JOS), released earlier this week.

The SHRM JOS shows that 41 percent of HR professionals are “somewhat optimistic” and nine percent are “very optimistic” about job growth during the second quarter of 2013. During April-June 2013, only six percent of organizations expect layoffs while 44 percent anticipate increasing staff levels, and 50 percent will maintain staff levels.  

Regarding the most immediate month, April 2013, LINE provides a snapshot of month-ahead hiring expectations. Respondents include HR professionals from 500 private service-sector companies and 500 manufacturing companies.

The SHRM LINE Report shows that:

  • In the manufacturing sector, 50.3 percent of companies will hire while 12.5 percent will trim payrolls, leaving a hiring net of 37.8 percent. The remaining 37.2 percent of manufacturers responding expect to hold steady with no hiring or layoffs in April 2013; and
  • In the service sector, 49.4 percent of HR professionals said their company plans to hire workers while 7.6 percent will cut jobs, leaving a hiring net of 41.8 percent. The remaining 43 percent of respondents from service-sector companies expect to hold steady with no hiring or layoffs in April 2013; and
  • On an annual basis—comparing April 2013 with April 2012—service-sector hiring will jump by a net of 21.7 points and manufacturing-sector hiring will dip by a net of -5.5 points.

“Both sectors also report high numbers of job vacancies,” said Jennifer Schramm, GPHR, and manager of workplace trends and forecasting at SHRM. “It may be that increased hiring expectations are leading to more vacancies in both exempt and nonexempt jobs or perhaps it’s taking longer to find candidates with the skills necessary to fill the job.”

(View SHRM expert’s 1 minute 53 second video explanation of SHRM LINE Report on SHRM YouTube Channel: http://www.youtube.com/watch?v=qT57fPlRoRE.)

The SHRM LINE Report also shows that recruiting difficulty was mixed in March 2013 (the most recent month available). Difficulty in finding qualified candidates for key jobs decreased in manufacturing and rose in services.

LINE’s new-hire compensation index shows that the rate of increase for new-hire compensation fell in both sectors on an annual basis, and that most organizations are keeping new-hire compensation rates flat.

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).

Highlights of SHRM LINE year-over-year findings:

Employment Expectations

Manufacturing

Service

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

-5.5 points

 

+21.7 points

 

Recruiting Difficulty

 

 

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

-8.8 points

+4.7 points

New-Hire Compensation

 

 

In March 2013, the rate of new-hire compensation was down in both sectors compared with a year ago.

 -3.8 points

 -4.9 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.

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