From one year ago, hiring in the manufacturing and service sectors is expected to grow in January, according to the Leading Indicators of National Employment report from the Society for Human Resource Management.
In fact, the manufacturing-sector hiring is expected to increase for the fifth time in six months while service-sector hiring is projected to grow for the sixth consecutive month.
Within the manufacturing sector, 42.2 percent of respondents plan to bring in more employees; however, 11 percent of respondents expect to cut staff for a hiring net of 31.2 percent. The other 46.8 percent of respondents anticipate making no staff changes in January.
For the service sector, 37.8 percent of respondents expect to hire employees, but 16.4 percent of respondents are reducing their work forces for a positive net of 21.4 percent. Meanwhile, the remaining 45.8 percent have no plans to make personnel changes in January.
From January 2013 to January 2012, service-sector hiring is estimated to grow by a net of 15.3 points while manufacturing-sector hiring is projected to increase by a net of 6 points.
“New-hire compensation rose in both sectors, as well, a sign that the job market is picking up,” says Jennifer Schramm, GPHR, and manager of workplace trends and forecasting at SHRM.
According to the December 2012 new-hire compensation index, a net total of 4.8 percent of respondents increased hiring packages, 5.4 percent increased new-hire compensation, and 0.6 decreased these packages. The recruiting-difficulty index for December 2012 also reveals that a net of 17.2 percent of respondents from the manufacturing sector reported greater difficulty in filling key jobs from one year ago. Among respondents from the service sector, a net total of 1.7 percent experienced more trouble in recruiting during December 2012 as opposed to one year ago.