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Human Resource manager group forecast major hiring drop

03.15.09

March 2009 Scranton/Wilkes-Barre/Hazleton edition of The Union News

Human Resource manager group forecast major hiring drop

BY PAUL TUCKER
THEUNIONNEWSSWB@AOL.COM

REGION, March 2nd- According to the Society for Human Resourse Management’s (SHRM), Alexandria, Virginia, employment report, hiring will drop substantially in both manufacturing and private service sectors compared to this time in 2008.

The Leading Indicators of National Employment report forecast a 36 percent drop in service sector hiring compared to this time last year. This is the worst drop in the survey’s four year history.

In the manufacturing sector, 3.1 percent of Human Resource (HR) professionals said they would decrease new-hire compensation while 2.3 percent said they plan to increase salary and wage packages. This is the second month in the Leading Indicators of National Employment history that has recorded manufacturers’ net total venturing into negative territory.

The Leading Indicators of National Employment report is released on the third Friday following the conclusion of the week containing the 12th of the month. The index describes the same time period referenced approximately one month later in the Employment Situation Report issued by the United States Department of Labor Bureau of Labor Statistics (BLS) in Washington DC.

The index is based on a monthly survey of human resource professionals at more than 500 manufacturing and 500 private service sector companies. Together, these two sectors comprise more than 90 percent of America’s private sector employment.

The organizations index of manufacturing employment expectations plunged 65.5 points compared with one year ago. Specifically, 44.3 percent of human resource managers surveyed plan to trim payrolls while 14.2 percent plan to hire. The minus 30.1 percent difference between the two marks a major drop from one year ago when the net was a positive of 35.4 percent.

Payroll vacancies include exempt salaried, and nonexempt, hourly, workers and are steep as reflected in survey responses. Human Resources managers report a 36.0 point drop in exempt job vacancies and a 36.1 point decrease in nonexempt job vacancies.

Those who do secure employment will face new hire compensation rates that are growing more showly than at this time one year ago, say the Human Resources managers survey.

The index shows service sector employment expectations fell 33.8 points. A breakdown of responses from Human Resource managers show that 22.3 percent plan to reduce staff while 26.3 percent plan to hire.

Payrolls show a 5.4 point decrease for exempt job vacancies and a 1.0 point fall in nonexempt hiring vacancies.

New hire compensation for job seekers who find service sector employment is expected to improve slightly with 11.3 percent of Human Resource managers reporting an increase in compensation packages for new hires while 1.2 percent report a decrease.

For those Human Resources professionals actively hiring, filling jobs with top talent is much easier than past years given a large number of qualified people unemployed and actively seeking work.

HSHRM is the world’s largest association devoted to Human Resources management. Representing more than 250,000 members in over 40 countries, the organization was formed in 1948 and has more than 575 affiliated chapters and serves the needs of Human Resource professionals and the HR profession.

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