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In August, mixed results for hiring compared with a year ago
A net of 30.1 percent of manufacturing respondents had more difficulty with recruiting in July, down 3.8 points from July 2015. A net of 26.8 percent of service-sector HR professionals had more difficulty recruiting in July, a decline of 1.1 points from a year ago.Other SHRM findings show that many HR professionals are still having challenges with talent management and recruitment. More than two-thirds of HR professionals (68 percent) reported challenging recruiting conditions in the current talent market, according to The New Talent Landscape: Recruiting Difficulty and Skills Shortages, a SHRM research report from June 2016.
In July, fewer employers increased new-hire compensation compared with a year agoIn the manufacturing sector, a net total of 15.0 percent of respondents reported raising new-hire compensation in July, down 0.3 points from July 2015. In the service sector, a net total of 14.5 percent of companies increased new-hire compensation in July, a decline of 5 points compared with a year ago.
Many organizations are still keeping new-hire compensation flat, and they may be directing more resources toward benefits as part of compensation packages. July marked the second consecutive month that the new-hire compensation index fell in both sectors when compared with the previous year.
During the economic recovery, heightened unemployment and a large pool of job seekers have allowed many companies to hold down the wages and benefits they offer new hires in order to control costs. Compensation typically improves as hiring increases, but job creation has not risen to the point where wage growth has improved on a widespread basis.
Vacant Positions in Exempt Employment
In July, fewer employers report increases in salaried job openings
Vacancies are defined as open positions that employers are actively trying to fill. LINE data cover exempt vacancies, or primarily salaried positions, and nonexempt vacancies, which are mostly hourly jobs. Changes in the number of job vacancies can be one of the earliest indicators of a shift in the balance between labor supply and demand. Typically, exempt employment fluctuates by smaller rates than nonexempt employment during economic downturns and expansions.
In July, a net total of 10.8 percent of manufacturers reported increases in exempt vacancies (21.8 percent reported more vacancies, 11.0 percent reported fewer), down 2.8 points from July 2015. In the service sector, a net total of 11.0 percent of respondents reported increases in exempt vacancies in July (20.6 percent reported more vacancies, 9.6 percent reported fewer), down 4.4 points from July 2015.
Vacant Positions in Nonexempt Employment
About This Report
Need data on what’s really happening in the job market? The SHRM LINE Employment Report covers the service and manufacturing sectors on key areas for recruiting each month.
Do you have your SHRM-CP or SHRM-SCP? Earn up to 20 PDCs by using LINE data to advance your organization. Refer to page 10 of the recertification handbook.
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For questions on LINE® data please contact SHRM Research at (703) 535-6301 or LINE@shrm.org. Members of the media should contact SHRM Media Affairs at (703) 535-6273, 703-535-6072, or firstname.lastname@example.org.
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