Hiring activity in May will reach a four-year high in manufacturing and a three- year high in the service sector, according to the Society for Human Resource Management’s monthly Leading Indicators of National Employment® (LINE) Report, released today.
A net of 52.9 percent of manufacturers and 38.9 percent of service-sector companies will add jobs in the month of May. The SHRM LINE Report, based on a survey of human resource professionals, predicts employment activity for the coming month, about 30 days before statistics on employment for the same time frame are available from the U.S. Bureau of Labor Statistics. “This hiring increase, however, is not translating into higher compensation packages for new hires,” said Jennifer Schramm, manager of workforce trends at SHRM.
A net total of just 4.5 percent of manufacturing respondents reported increasing new-hire compensation in April, a decline of 3.5 points from April 2013. In the service sector, a net total of 6.6 percent of companies increased new-hire compensation in April, down 1.3 points from a year ago. “HR professionals are also reporting a rise in recruiting difficulty in both sectors in April, a sign that the labor market may be heating up,” Schramm said.
Recruiting difficulty for both sectors hit a four-year high in April. A net of 17.5 percent of manufacturing respondents had more difficulty recruiting for open positions in April, up 4.9 points from April last year. A net of 18.4 percent of service-sector HR professionals had more difficulty recruiting in April, compared to a year ago. Additionally, hourly job vacancies fell in both sectors compared with a year ago, while salaried job openings fell in manufacturing and rose in the services industry.