According to the SHRM Leading Indicators of National Employment (LINE) Report for March 2012, the hiring rate will rise slightly in manufacturing, reaching the highest rate since 2006, yet the hiring rate will fall in the service sector. A net of 50.5 percent of manufacturers will add jobs in March and the sector’s index will rise in a year over year basis by a net of 4.8 points.
In the service industry, a net of 24.7 percent of service-sector companies will add jobs in March, but the year over year hiring index will fall by 10.3 points. Although the service sector hiring rate has fallen, the manufacturing hiring rate increase reflects an ongoing trend of overall steady growth in job creation, which is also reflected in recent federal data. Salaried job openings in both sectors remain virtually unchanged compared to 2011; the manufacturing sector saw only a 0.6 point increase while the service sector saw only a 0.4 percent increase.
In February, some HR professionals still struggled to land qualified workers for essential positions, especially in the manufacturing industry. A net of 17.5 percent of manufacturing respondents had more difficulty recruiting in February, while only 5.3 percent of HR professionals in the service sector reported difficulty. Additionally, in February, there was minimal change in compensation for new hires, compared to that of a year ago. The manufacturing sector only saw a 0.7 increase from 2011 while the service sector saw a 1.9 decrease from a year ago.
To read the full Leading Indicators of National Employment (LINE) Survey report, click here.