The Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment (LINE) Report expects that job growth will be limited in November, as job creation slows and job cuts rise in both the manufacturing and service sectors.
As in previous months, human resource professionals report recruiting difficulty in both sectors; a net of 14.5 percent of manufacturing respondents had increased difficulty with recruiting, an increase of 5.9 points compared to one year ago. A net 7.9 percent of service-sector professionals had more difficulty, an increase of 3.4 points from October 2010 and the highest net for the month of October in four years. This data suggests the labor market may be suffering partially from structural issues combined with decreased demand.
For the 13th consecutive month, new employees’ wages and benefits are rising. In the manufacturing sector, a net total of 5.3 percent of respondents experienced an increase in new-hire compensation in the month of October, while 9.9 percent of companies increased new-hire compensation. Excluding September 2010, the rate of new-hire compensation has risen on an annual basis in both sectors for every month since February 2010.
To read the full LINE report click here.