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In November, hiring rates will be mixed compared with a year ago
A net of 27.6 percent of manufacturing respondents had more difficulty with recruiting in October compared with the previous month, down 9.1 points from October 2015. A net of 27.2 percent of service-sector HR professionals had more difficulty recruiting in October, a decline of 16.1 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 October, results were mixed for new-hire compensationIn the manufacturing sector, a net total of 14.5 percent of respondents reported raising new-hire compensation in October, up 0.6 points from October 2015. In the service sector, a net total of 10.3 percent of companies increased new-hire compensation in October, a decrease of 7.2 points compared with a year ago.
Despite overall low levels of unemployment, many organizations are still keeping new-hire compensation flat. October marked the first time in five months that the new-hire compensation index rose in manufacturing 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 October, fewer employers reported 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 October, a net total of 10.6 percent of manufacturers reported increases in exempt vacancies (20.5 percent reported more vacancies, 9.9 percent reported fewer), down 0.4 points from October 2015. In the service sector, a net total of 3.4 percent of respondents reported increases in exempt vacancies in October (14.6 percent reported more vacancies, 11.2 percent reported fewer), down 8.6 points from October 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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