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In September, hiring rates will take a step back compared with a year ago
A net of 28.9 percent of manufacturing respondents had more difficulty with recruiting in August, down 6.2 points from August 2015. A net of 39.3 percent of service-sector HR professionals had more difficulty recruiting in August, an increase of 3.5 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 August, results varied for new-hire compensation compared with a year agoIn the manufacturing sector, a net total of 14.3 percent of respondents reported raising new-hire compensation in August, down 2.4 points from August 2015. In the service sector, a net total of 23.6 percent of companies increased new-hire compensation in August, an increase of 3.8 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. August marked the third consecutive month that the new-hire compensation index fell in manufacturing when compared with the previous year.
Although compensation typically improves as hiring increases, wages have not grown significantly on a widespread basis during the economic recovery.
Vacant Positions in Exempt Employment
In August, 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 August, a net total of 11.4 percent of manufacturers reported increases in exempt vacancies (19.8 percent reported more vacancies, 8.4 percent reported fewer), down 3 points from August 2015. In the service sector, a net total of 11.2 percent of respondents reported increases in exempt vacancies in August (19.4 percent reported more vacancies, 8.2 percent reported fewer), down 0.8 points from August 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.
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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