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In January, hiring rates will increase in both sectors compared with a year ago
Source: January 2017 SHRM LINE Report
Note: Annual net change is calculated by subtracting the net increase of the same month one year ago from the net increase of the current month.
A net of 28.4 percent of manufacturing respondents had more difficulty with recruiting in December compared with November 2016, down 2.2 points from a year ago. A net of 33.6 percent of service-sector HR professionals had more difficulty recruiting in December compared with the previous month, an increase of 3.4 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 December, fewer employers in both sectors increased new-hire compensationIn the manufacturing sector, a net total of 12.9 percent of respondents reported raising new-hire compensation in December, down 1.6 points from December 2015. In the service sector, a net total of 13.3 percent of companies increased new-hire compensation in December, a decrease of 4.9 points compared with a year ago.
Despite overall low levels of unemployment, many organizations are still keeping new-hire compensation flat. December marked the fourth month in a row that the new-hire compensation index fell in services when compared with the previous year, for example.
Compensation typically improves as hiring increases, and although job creation has been strong for several years, wages have only just begun to show improvement in many sectors of the economy.
Vacant Positions in Exempt Employment
In December, changes in salaried job openings varied compared with a year ago
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 December, a net total of 9.6 percent of manufacturers reported increases in exempt vacancies (19.9 percent reported more vacancies, 10.3 percent reported fewer), up 1.7 points from December 2015. In the service sector, a net total of 4.2 percent of respondents reported increases in exempt vacancies in December (15.6 percent reported more vacancies, 11.4 percent reported fewer), down 8.8 points from December 2015.
Vacant Positions in Nonexempt Employment
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. The report includes:
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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