The Society for Human Resource Management (SHRM) said that manufacturing hiring will remain weak in June, but it expects service sector employment to pick up. The Leading Indicators of National Employment (LINE) survey is one of the few that look at hiring trends for the current month, and it mostly observes net hiring changes relative to what they were one year ago.
Specifically, 50.8 percent of manufacturers planned to increase employment in June, compared to 13.5 percent expecting to reduce employment. The good news is that this suggests net hiring of 37.3 percent, but it also indicates that the pace has eased from what was seen 12 months ago. In June 2012, just 5.2 percent planned employment decreases, with 49.0 percent hiring in that month. The net hiring rate was therefore 43.8 percent. Therefore, the year-over-year difference in net hiring is a drop of 6.5 percentage points.
In comparison, the net percentage of service sector firms planning increases this month was 42.9 percent, with 49.8 percent of service sector businesses expecting to increase employment in June. At the same time, 6.9 percent anticipating the need to let workers go. These figures are a significant shift from one year ago, when just 31.0 percent were planning to hire. Overall, the net percentage rose 20.5 percentage points from last year.
Chad Moutray is the chief economist, National Association of Manufacturers.
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