November New Hires Expected to Rise
The Society for Human Resource Management’s newest Leading Indicators of National Employment report found that about one-third of employers in the manufacturing and service sectors expect to hire new employees at some point during November, the fourth consecutive month of this occurrence. Of employers in manufacturing, 45.7 percent plan to hire new employees and 12.1 percent intend to reduce their workforce leading to a net gain of 33.6 percent. The remaining respondents expect no staff changes for the month.
New hires are anticipated at 43.7 percent of service-sector employers and 10 percent predict a cut in their staffing numbers, equating to a positive net of 33.7 percent. The remaining 46.3 percent foresee no staffing changes. For the 12 month period between November 2011 and November 2012, hiring is expected to increase by 16.4 percent in the service sector and 6.3 percent in the manufacturing sector.
“Increased consumer confidence is sparking a rise in holiday hiring among many employers in the service sector,” says Jennifer Schramm, manager of workplace trends and forecasting at SHRM. “With recruiting difficulty mixed and no major increases in salaries planned for 2013, there were also few changes in new-hire compensation in October. The new-hire compensation index was unchanged in manufacturing and down only slightly in services.”
Service sector recruitment difficulty rose 3.6 percent over the year while falling 2.6 percent in the manufacturing sector. Increased compensation for new hires was reported by only 5.3 percent of manufacturing respondents and 7 percent of service respondents. However, just 1.4 percent of respondents in manufacturing and 0.6 percent in the services reported reducing new-hire compensation.