SHRM LINE: Manufacturing, service sector hiring rates to rise in June compared with a year ago

In June 2017, employment will grow at 65.4 percent of manufacturing firms and decline at 8.6 percent. The resulting net increasing index of 56.9 (65.4 - 8.6) suggests faster employment growth in manufacturing than in June 2016 (50.8).

In June 2017, employment levels will grow at 61.0 percent of service-sector firms and decline at 5.5 percent of firms, producing a net increasing index of 55.5 (61.0 - 5.5), which suggests more robust service-sector employment growth than in June 2016 (51.2).

Compared with May of last year, in May 2017 the recruiting difficulty index rose by 8.8 points in the manufacturing sector and 12.7 points in the service sector. The LINE new-hire compensation index reported below suggests firms may be responding to this increased recruiting difficulty by increasing starting wages to attract highly qualified individuals to fill key positions.

In the manufacturing sector, 24.2 percent of firms reported raising new-hire compensation in May 2017 compared with 16.9 percent in May 2016. In the service sector, 13.6 percent of firms reported raising new-hire compensation in May 2017 compared with 16.9 percent in May 2016; however, the annual net change increased by 2.6 points.

The full report can be found here.