For the third month in a row, the Society for Human Resource Management’s (SHRM) September Leading Indicators of National Employment (LINE) Report predicts a rise in layoffs and decline in hiring.
While 44 percent of manufacturers plan to hire in September, roughly 16 percent report they are cutting jobs.
Hiring in the service sector remains at a stagnant 32 percent with nearly 10 percent planning to eliminate positions – a 2.1 percent increase from 2010 and potential setback for the labor market’s recovery.
Last month proved to be the most challenging month for employers with nearly 24 percent – a four-year high – reporting recruiting difficulties in manufacturing (up from 9 percent in 2010) and more than double facing challenges in the service sectors (15.5 percent up from 7.3 percent in 2010).
Much like August, the September LINE Report reflects a continued annual increase in compensation packages for new hires. Considering the data on the difficulty of recruiting, this suggests the labor market is experiencing structural issues and employers are incentivizing new hires to fill key strategic positions within their companies.
To read the full LINE report, click here.