Employment growth slows; open positions increase

According to new numbers from the Leading Indicator of National Employment (LINE), April employment growth slowed slightly, yet the number of manufacturers hiring for open positions increased. Hiring projections for May remain positive as human resource (HR) professionals expect to increase employment headcount in May. LINE is a collaboration between the Society for Human Resource Management (SHRM) and the Rutgers University School of Management and Labor Relations.

This is the third straight month in which employment growth has slowed and the sixth month that the number of vacant positions has increased, primarily for nonexempt jobs. In addition, the LINE Recruiting Difficulty Index is at its highest level since July 2004. This reinforces the conclusion that while manufacturers are recruiting, many are having a difficult time finding skilled labor to fill open positions, creating an unmet demand for labor in the U.S. manufacturing sector.

The March 2005 LINE Report indicated employment growth for March would be between January and February levels, which the Bureau of Labor Statistics (BLS) later confirmed. This month's index suggests that job growth in April will be close to the levels achieved in March.