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SHRM Report: July 2011 Hiring Will Decrease
Alexandria, Va. – A monthly survey of human resource professionals at more than 1,000 companies across the country shows July 2011 hiring will decline slightly in the manufacturing sector and moderately in the service sector when compared to one year ago.
The Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment® (LINE®) Report includes the only national employment index of HR professionals’ month-ahead hiring expectations.
Released the first Thursday of each month, the SHRM LINE Report for July 2011 shows that manufacturing sector hiring will decrease by a net of 4.5 points and service sector hiring will fall by a net of 13.6 points compared with July 2010.
Specifically, a net of 34.7 percent human resource professionals in manufacturing companies said they will hire in July compared with a net of 39.2 percent one year ago—leaving a negative net of 4.5 on a year-over-year basis.
In the service sector, a net of 41.5 percent of human resource professionals said their company plans to hire workers in July compared with a net of 55.1 percent that did so one year ago—leaving a negative net of 13.6 points.
“In the continuation of a worrying trend, once again this month a lower percentage of human resource professionals in both manufacturing and services report increased hiring expectations for July 2011 than at the same time last year,” said Jennifer Schramm, manager of workplace trends and forecasting at SHRM.
Is there any good news for July 2011?
The LINE findings show relatively good news in that layoffs are few when July is examined on its own and independent of trends marked one year ago. Nearly half—47.1—of manufacturing human resource professionals surveyed said their company plans to hire while 12.4 percent plan to cut staff.
In the service sector, roughly half (47.7 percent) of human resource professionals surveyed said their company plans to add workers to payrolls while 6.2 percent expect to lay off staff.
What happened last month with new-hire compensation?
The LINE Report provides a snapshot of anticipated hiring for the month ahead and also examines data from the previous month regarding new-hire compensation trends and recruiting difficulty.
Wages and benefits for newly hired employees inched up in June 2011 for both sectors. Compensation packages in the service sector made a 5.0-point net gain compared with one year ago, while the manufacturing sector made a 3.3-point year-over-year net gain.
The June 2011 gains—though small—are a bright spot this summer.
“Difficulty filling key positions may be one reason why the new-hire compensation index continues to rise,” said Schramm. “In spite of these more subdued hiring rates, recruiting difficulty continues to rise in both sectors.This may suggest that even with fewer companies hiring, the types of positions employers are trying to fill require skills and experience that are not abundant in the labor market.”
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 July, the hiring rate will decline on an annual basis in the manufacturing and service sectors.
In June, the index for recruiting difficulty rose moderately in both sectors compared with a year ago.
The rate of increase for new-hire compensation in June rose slightly in both sectors compared with a year ago.
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.
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