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Hiring to Rise in Manufacturing and Service Sectors During July, SHRM LINE Report Predicts
 

   7/2/2014
ALEXANDRIA, Va.— For the second consecutive month, hiring rates will reach four-year highs in the manufacturing and service sectors, according to the Leading Indicators of National Employment® (LINE) Report, which was released today by the Society for Human Resource Management (SHRM).

According to the report, a net of more than one-half of manufacturers (53.2 percent) and almost one-half of service-sector companies (49.2 percent) will add jobs in July, which is a 14.8 point increase in manufacturing and a 6.7 point increase in the service sector, compared to the same time last year. 

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. 

In June, hourly and salaried job openings also increased compared to a year ago, with the greatest increase in the number of service-sector hourly vacancies.

Challenges in recruiting for key positions also hit a four-year high in both sectors, according to surveyed human resource professionals. In June, a net of 25.9 percent of manufacturing respondents and 19.3 percent of service-sector respondents experienced more difficulty in recruiting. 

“With hiring rates trending upward, it makes sense that recruiting difficulty has also continued to rise,” said Jennifer Schramm, manager of workforce trends at SHRM. “The index rose in both sectors in June compared with a year ago, indicating that competition for the most qualified candidates in key positions may be heating up.”

Additionally, the report found that more employers are increasing compensation for new hires. A net total of 10.9 percent of manufacturers and 12.5 percent of service-sector companies reported increasing new-hire compensation in June.

“Compensation is now the top employee job satisfaction factor,” Schramm explained. “In response to this more competitive environment, employers may begin experiencing pressure to increase wages.” 

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 http://www.shrm.org/line. The Jobs Outlook Survey Report is available at http://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 or Laura Ambrosio at 703-535-6273 or Laura.Ambrosio@shrm.org. Follow us on Twitter @SHRMPress.

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 SHRM Online at www.shrm.org.
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