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In October, hiring rates will decline compared with a year ago
A net of 38.9 percent of manufacturing respondents had more difficulty with recruiting in September, up 4.3 points from September 2015. A net of 37.3 percent of service-sector HR professionals had more difficulty recruiting in September, an increase of 9.8 points from a year ago. Both net totals represented four-year highs for recruiting difficulty in September for the manufacturing and service sectors.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 September, fewer employers increased new-hire compensation compared with a year agoIn the manufacturing sector, a net total of 14.7 percent of respondents reported raising new-hire compensation in September, down 1.2 points from September 2015. In the service sector, a net total of 12.7 percent of companies increased new-hire compensation in September, a decrease of 3.4 points compared with a year ago.
Despite overall low levels of unemployment, many organizations are still keeping new-hire compensation flat, and they may be directing more resources toward benefits as part of compensation packages. September marked the fourth consecutive month that the new-hire compensation index fell in manufacturing when compared with the previous year.
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 September, 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 September, a net total of 8.9 percent of manufacturers reported increases in exempt vacancies (20.8 percent reported more vacancies, 11.9 percent reported fewer), down 7.7 points from September 2015. In the service sector, a net total of 3.3 percent of respondents reported increases in exempt vacancies in September (18.2 percent reported more vacancies, 14.9 percent reported fewer), down 4.5 points from September 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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