Hiring Rate Expected to Increase in Manufacturing and Stall in Service Sector During January, SHRM LINE Report Predicts

Recruiting difficulty for key jobs rose in December for 10th consecutive month

Jan 8, 2015
ALEXANDRIA, Va. — In January, for the 10th straight month, the manufacturing hiring rate will increase when compared to the previous year, according to the Society for Human Resource Management’s (SHRM’s) Leading Indicators of National Employment® (LINE) Report.

This increase will result in a four-year high for manufacturing hiring in January. Service-sector hiring, on the other hand, will fall slightly when compared to the same month 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 data on employment for the same time frame are available from the U.S. Bureau of Labor Statistics.

In December, for the 10th consecutive month, recruiting difficulty rose in both sectors when compared to the previous year.

A net of 25.8 percent of manufacturing respondents had difficulty with recruiting in December, an increase of 14.1 points from December 2013. A net of 24.1 percent of service-sector HR professionals had difficulty recruiting in December, an increase of 10.7 points from a year ago.

“Recruiting difficulty may be starting to influence the pay packages being offered to new hires,” explained Jennifer Schramm, manager of workforce trends at SHRM. “The LINE new-hire compensation index rose in both sectors in December compared with a year ago.”

While most organizations are still not increasing new-hire compensation, the net total in both sectors represented four-year highs for the month of December.

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 shrm.org/line. 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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