Employers Report Small Increases to New-Hire Compensation as a Result of Recruiting Difficulty
The changes in employment growth were anticipated and reported in the September LINE report. Some of the drop in employment may be explained by seasonality. However, LINE is also showing that the job market continues to tighten as more employers report an inability to fill key positions because of difficulty finding skilled employees. In addition, the LINE employment expectations index suggests that consistent with typical seasonal patterns, fewer manufacturers will be hiring in November.
LINE reports on five employment measures. An index value above 50 indicates employment is growing, while an index below 50 shows that employment is contracting. For a full copy of the report and a detailed description of each component, go to http://www.shrm.org/LINE.
SHRM/Rutgers LINE and Its Five Components October May June July August September October 2004 2005 2005 2005 2005 2005 2005 SHRM/Rutgers 58.2 60.8 63.7 61.8 60.6 61.5 58.7 LINE Manufacturing 56.8 59.1 64.0 61.2 58.4 61.4 57.0 employment Manufacturing 62.8 64.4 64.6 64.8 65.8 64.0 63.5 vacancies Recruiting 58.0 58.9 59.4 60.7 63.0 59.5 59.4 difficulty New hire 53.0 56.6 56.7 54.7 55.9 53.8 55.6 compensation Employment 67.6 73.2 72.1 70.5 70.7 69.5 66.2 expectations
A collaboration between the Society for Human Resource Management and the Rutgers University, LINE identifies early economic trends and changes in the national job market by surveying human resource (HR) professionals at manufacturing firms. To date, LINE has correlated closely with Bureau of Labor Statistics (BLS) jobs numbers.
The SHRM/Rutgers LINE has been collecting data since February 2004 and is functioning as a valuable leading indicator of economic and labor market conditions. The October SHRM/Rutgers LINE survey was provided to HR professionals at over 500 manufacturing firms.
The indicator is released at 8:30 am ET on the fourth Tuesday of each month. A copy of the October report and answers to frequently asked questions can be found at http://www.shrm.org/LINE.
The Society for Human Resource Management (SHRM) is the world's largest association devoted to human resource management. Representing more than 200,000 individual members, the Society's mission is both to serve human resource management professionals and to advance the profession. Founded in 1948, SHRM currently has more than 500 affiliated chapters within the United States and members in more than 100 countries. Visit SHRM Online at http://www.shrm.org.
The School of Management and Labor Relations at Rutgers, the State University of New Jersey, is a leading center of scholarly and applied research on human resource management issues. The school creates and disseminates knowledge that fosters a better understanding of the nature of employment and work in modern society. The Rutgers Master of Human Resource Management degree is one of the top human resource management programs in the nation.
Web site: http://www.shrm.org/