Most employers in the manufacturing sector plan to increase hiring in the coming five weeks, according to the latest Leading Indicator of National Employment, a joint effort between the Society for Human Resources and Rutgers University.
LINE’s employment expectations index indicated strong expansion for manufacturing employers through September, but there are clear signs manufacturers are finding it tough to recruit the skilled talent they need. That may be due in part to the fact that new-hire compensation remains flat, another finding of the latest LINE report.
In the manufacturing sector, 58 percent of employers reported plans to hire in the next five weeks. Employers reported a small increase in the number of nonexempt vacant spots, but the report said there appears to be progress in filing those positions.
“Manufacturers are finding it more difficult to recruit skilled workers, but it does not appear to be putting pressure on new-hire compensation,” the release said.
The indicator reports on four employment measures: job expectations, job vacancies, new-hire compensation, and recruitment difficulty. The authors say their employment expectations index has “consistently provided an early indication of the upcoming Bureau of Labor Statistics numbers,” with three exceptions: In July of 2004, 2005, and 2006, the companies in the LINE panel did not experience the large mid-summer dip in employment that was reflected in the BLS data.
Within the services sector, 53 percent of employers plan to increase hiring in September.