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SHRM Report: January Hiring Growth Expected To Show Small Gains
Alexandria, Va. – Hiring growth will continue to make small gains in January for the 15th straight month on an annual basis, according to a monthly survey of human resource professionals at more than 1,000 companies across the country.
The Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment® (LINE®) Report, which includes the only national employment index of HR professionals’ month-ahead hiring expectations, shows a double digit point increase in January hiring plans for the manufacturing and service sectors compared to last year.
“On a year-over-year basis, hiring in both the manufacturing and private service sectors are at a three-year high, while those reporting layoffs are at a four-year low,” said Jennifer Schramm, SHRM’s manager of workplace trends and forecasting. “Though comparisons to the same time last year are positive, the pace of improvement has not accelerated in the last several months.”
THE SHRM LINE Report shows that the manufacturing sector hiring index in January 2011 will rise by 12 points, and the service sector hiring index will increase by 10.2 points compared with the same time last year.
In the manufacturing sector, a net of 29.6 percent of employers expect to hire in January, an improvement over the net of 17.6 percent who hired last year. Only 10.8 percent of manufacturers plan to cut jobs this month, while 40.4 percent plan to hire—a three-year high for January hiring.
Nearly a quarter (a net of 21.5 percent) of service sector employers plan to hire this month, up from a net of 11.3 percent in January 2010. The layoff rate (9.2 percent) will reach a four-year low, while 30.7 percent of employers expect to hire—also a three-year high for January hiring expectations.
The LINE Report provides a snapshot of anticipated hiring for the month ahead and also examines data from the previous month.
Wages and benefits for newly hired employees remained relatively flat in December 2010 for both sectors. Compensation packages in the service sector made a 1.8 point net gain since December 2009, while the manufacturing sector made a 2.9 point year-over-year net gain.
The LINE Employment Report examines four key areas: employers’ hiring expectations, new-hire compensation, difficulty in recruiting top-level talent and job vacancies. The LINE Report is based on a monthly survey of human resource professionals at more than 500 manufacturing and 500 private service-sector companies. Together, these two sectors comprise more than 90 percent of America’s private sector employment.
Highlights of SHRM LINE year-over-year findings:
In January, for the 15th straight month, hiring will increase in manufacturing and services on an annual basis.
In December, the index for recruiting difficulty rose sharply in manufacturing and slightly in services compared with a year ago.
The rate of increase for new-hire compensation in December rose on an annual basis in both manufacturing and services.
Source: SHRM Leading Indicators of National Employment
To read the SHRM LINE Report, visit: http://www.shrm.org/Research/MonthlyEmploymentIndices/Pages/default.aspx and click the “Latest LINE Report” button.
Reporters note: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 SituationReport issued by the Bureau of Labor Statistics.
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 250,000 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. Follow us on Twitter at: SHRMPress.
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