According to the Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment (LINE) Report, hiring will come to a near standstill and compensation will inch up during the month of October.
Employers in the manufacturing sector report a virtually unchanged annual hiring rate increase of just around 1 percent while those in the service sector anticipate a year-over-year 10 percent decline.
Both sectors continue to report recruiting difficulty, which may be attributed to new or enhanced skill requirements for recently created high-level jobs. A net of 9.7 percent (up by 4.9 percent from 2010) of HR managers in the manufacturing sector had more difficulty with recruiting compared with a net of 11.6 percent (up by 4.6 percent from 2010) of respondents in the service sector.
Regarding new-hire compensation trends, the October 2011 report shows that during September 2011 more companies increased new employees’ wages and benefits for the 12th consecutive month. Specifically, 10.7 percent of HR professionals reported their organizations increased new-hire compensations, an increase of 6.7 percent from one year ago.
To read the full LINE report click here.