Earlier this month the Society for Human Resources Management (SHRM) released the Leading Indicators for National Employment (LINE) with predictions of what hiring will look like for August 2015. Among the key finding is that hiring is expected to remain steady for the remainder of the month with difficulty recruiting candidates for key positions.
Manufacturing hiring is projected to be to modestly decrease during August. It is expected that 56.5% of Manufacturers will be adding jobs this month while 10.1% will cut jobs giving a net hiring of 46.4%. Among the Service sector 550.3% will be hiring with 6% laying off for a net hiring in August expected at 44.3%.
The LINE report also looks back at the recruiting efforts from the previous month of July. Human Resources departments surveyed continue to report difficulty finding candidates for key jobs in both Manufacturing and Service Sector. For the 15th consecutive month recruiting difficulty has risen in both the Manufacturing and Service Sectors when compared to the previous year. Many of these Human Resources departments identify there remains a shortage of talent for key jobs.
The LINE Report also reflects on new hire compensation from the previous month. During August new hire compensation increased in the Manufacturing and Service sectors compared to last year. Over the year employers have begun to improve some of the wages they offer new hires. High unemployment and a large candidate pool helps hold down new hire compensation. As the labor pool shrinks and competition for new employees increases new hire compensation should increase.
To view the full report go to LINE Employment Report for August 2015.
The LINE report is published by SHRM and has shown a high degree of accuracy when compared to the Department of Labor, Bureau of Labor Statistics Employment Situation report which is published at the end of the month. The LINE report is predictive in expected hiring and is compiled by surveying 500 Human Resource executives in the manufacturing sector and 500 Human Resources executives in the service sectors. The report asks the Human Resources executives if they plan to add workers during the month. Combined these two sectors employ 90% of the country’s private sector work force. The next LINE report will be published September 3, 2015 with predictions of expected hiring, recruiting and new hire compensation activity for August 2015.
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