May 10, 2010
Hiring activity in the manufacturing sector will increase significantly in May compared with a year ago, according to the Society of Human Resource Management’s (SHRM) Leading Indicators of National Employment (LINE) survey for May 2010.
The 54.5 percent of manufacturers that will add jobs in May is the highest percentage since October 2007. Even with the positive numbers, the unemployment rate is expected to remain elevated throughout 2010. The sharp rise in the LINE hiring index also is a reflection of poor job market conditions a year ago.
Even though relatively few respondents are having a harder time finding top talent, the level of difficulty has risen compared with a year ago. In the manufacturing sector, a net of 0.9 percent of respondents had less difficulty with recruiting in April (8.8 percent reported more difficulty, 9.7 percent reported less difficulty). This is still a sharp net increase of 18.9 points from April 2009, when a net of 19.8 percent reported less difficulty with recruiting.
In the manufacturing sector, a net total of 4.9 percent of respondents said they would increase new-hire compensation in April (6.1 percent increased, 1.2 percent decreased). That is an increase of 7.2 points from April 2009.
The low rate of change indicates that most organizations are keeping new-hire compensation rates flat and that people landing new jobs are continuing to accept lower wages and benefits as the labor market remains weak.
The full report, which also includes data for the service sector, can be found here