SHRM: Hiring In Manufacturing and Services To Rise In 2013

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SHRM: Hiring in manufacturing expected to rise.

SHRM: Hiring in manufacturing & services to rise.

By Resumebear– The manufacturing sector is expected to increase hiring in January 2013 compared to one year ago according to a report from the Society for Human Resource Management (SHRM).

The report also shows that the manufacturing-sector hiring rate will rise for the fifth time in six months compared with a year ago. The service-sector hiring rate will rise for the sixth consecutive month compared with a year ago.

The findings are detailed in the SHRM LINE Report—Leading Indicators of National Employment®. The report provides a snapshot of month-ahead hiring expectations. (The Bureau of Labor Statistics jobs report analyzes past-month hiring trends.)

Respondents include HR professionals from 500 private service-sector companies and 500 manufacturing companies.

The report shows three key data trends:

  • In the manufacturing sector, 42.2% of companies will hire while 11% will trim payrolls, leaving a hiring net of 31.2%. The remaining 46.8% expect to hold steady with no hiring or layoffs in January 2013;
  • In the service sector, 37.8% of HR professionals said their company plans to hire workers while 16.4% will cut jobs, leaving a positive net of 21.4%. The remaining 45.8 percent are expected to hold steady with no hiring or layoffs in January 2013;
  • On an annual basis—comparing January 2013 with January 2012—service-sector hiring will jump by a net of 15.3 points and manufacturing-sector hiring will rise by a net of 6 points.

“New-hire compensation rose in both sectors as well, a sign that the job market is picking up,” said Jennifer Schramm, GPHR, and manager of workplace trends and forecasting at SHRM.

The December 2012 (the most recent month available) new-hire compensation index shows a net total of 4.8% of HR professionals increased hiring packages (5.4% increased new-hire compensation while 0.6 decreased such packages).

The recruiting-difficulty index for December 2012 (the most recent month available) shows a net of 17.2% of manufacturers had more difficulty filing key jobs compared with one year ago. A net total of 1.7% of service-sector HR professionals reported an increase in recruiting difficulty during December 2012 compared to one year ago.

The SHRM LINE Report features the only national monthly employment indices capturing HR professionals’ past-month recruiting difficulty, a new-hire compensation index, and an index of exempt and non-exempt job vacancies (in addition to the month-ahead hiring expectations index highlighted above)

Highlights of SHRM LINE year-over-year findings:

Employment Expectations Manufacturing Service
In January 2013, the hiring rate will rise in manufacturing and services compared with a year ago. +6.0 points +15.3 points
Recruiting Difficulty
In December 2012, recruiting difficulty rose in manufacturing and fell in services compared with a year ago. +5.6 points -7.4 points
New-Hire Compensation
In December 2012, the rate of new-hire compensation rose in both sectors compared with a year ago.  +1.3 points  +8.9 points

Source: SHRM Leading Indicators of National Employment 

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