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In July, hiring rate will rise in manufacturing and fall in services compared with a year ago
A net of 30.8 percent of manufacturing respondents had more difficulty with recruiting in June, down 2.9 points from June 2015. A net of 28.1 percent of service-sector HR professionals had more difficulty recruiting in June, a small increase of 0.6 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 June, fewer employers increased new-hire compensation compared with a year agoIn the manufacturing sector, a net total of 13.8 percent of respondents reported raising new-hire compensation in June, down 1.5 points from June 2015. In the service sector, a net total of 11.8 percent of companies increased new-hire compensation in June, a decline of 2.3 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. June marked the first month since May 2014 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. LINE provides the only published index of changes in new-hire compensation.
Vacant Positions in Exempt Employment
In June, mixed results for changes 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 employees. 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 declines or rises by smaller rates than nonexempt employment during economic downturns and expansions, respectively.
In June, a net total of 12.9 percent of manufacturers
reported increases in exempt vacancies (25.3 percent reported more vacancies,
12.4 percent reported fewer), down 3.2 points from June 2015. In the service sector,
a net total of 15.6 percent of respondents reported increases in exempt
vacancies in June (22.7 percent reported more vacancies, 7.1 percent reported fewer),
up 1.4 points from June 2015.
Vacant Positions in Nonexempt Employment
About This Report
The LINE Annual Review for 2014 looks at how LINE data correspond with other employment indicators and at broader economic trends and developments that occurred in the last 12 months. Previous LINE annual reviews are available upon request at LINE@shrm.org.
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 only national employment indicator that includes hiring expectations for the month ahead – released one month earlier than the Bureau of Labor Statistics (BLS) Employment Situation Report covering the same period.
Month to month data on new-hire compensation changes.
The only published measure of recruiting difficulty of highly qualified candidates for the most critical positions.
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 email@example.com.
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