LINE: Manufacturing hiring up in June

According to new numbers from the Leading Indicator of National Employment (LINE™), manufacturers were hiring more in June than they were in previous months, but the number is not as high as last June's seasonal hiring increase. The June LINE data suggests that manufacturing employment growth most likely will show greater growth in June than in May, but will unlikely show growth if the numbers are seasonally adjusted. LINE is a collaboration between the Society for Human Resource Management (SHRM) and the Rutgers University School of Management and Labor Relations.

In May, LINE indicated manufacturing growth was greater than it was in April. This was confirmed by the BLS numbers in early June. According to this month's LINE, that trend appears to continue for June. Also of note this month is that the new hire compensation growth is the highest it's been since the LINE began collecting data in February 2004. This may be a short term fluctuation or the beginning of a wage inflation trend.

Last June, the overall LINE indicated robust growth. This is the normal seasonal pattern in the manufacturing industry. This month, also shows substantial employment growth, as expected. Although this month is the strongest employment growth of 2005, it falls short of the level of June 2004.