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SHRM LINE: Hiring rates take step back in September compared to a year ago

In September, job creation rates will fall in both manufacturing and the service sector compared with a year ago. Layoff rates will vary, as fewer manufacturers will cut jobs and more service-sector employers will conduct layoffs, according to the Society for Human Resource Management’s (SHRM®) Leading Indicators of National Employment (LINE®) survey for September 2016.

A net of 40.7 percent of manufacturers will add jobs in September (50.1 percent will hire, 9.4 percent will cut jobs). The sector's hiring index will decrease by 0.5 points compared with a year ago.

A net of 43.2 percent of service-sector companies will conduct hiring in September (49.8 percent will add jobs, 6.6 percent will cut jobs). The index will fall by 5.8 points compared with a year ago.

The full report, which also covers recruiting difficulty and new compensation trends, can be found here. Regarding wages, the survey found that many organizations are still keeping new-hire compensation flat, and they may be directing more resources toward benefits as part of compensation packages. August marked the third consecutive month that the new-hire compensation index fell in manufacturing when compared with the previous year.

Although compensation typically improves as hiring increases, wages have not grown significantly on a widespread basis during the economic recovery.