February Job Market Shows Slowing Employment Growth
Alexandria, VA (Vocus) January 23, 2007 -- According to new numbers from the Leading Indicator of National Employment® (LINE™) report, there will be more hiring in manufacturing and less in services in February 2007, compared to February 2006. The findings are reported in the February report of the LINE™ index, a collaborative effort between the Society for Human Resource Management (SHRM) and the Rutgers University School of Management and Labor Relations.
This LINE™ employment expectations report references the same February period as the report the Bureau of Labor Statistics (BLS) will release on March 9, 2007.
Despite the major decline in overall job vacancies, firms continue to face considerable difficulty in finding highly qualified applicants to fill key positions. Within both the manufacturing and service sectors, recruiting difficulty continues to be a major concern and new-hire compensation in January 2007 is rising faster than it was a year ago. The responses to the January SHRM/Rutgers LINE survey suggest that the tightening labor market is forcing more firms to increase starting wages as a way to attract more qualified job applicants.
The indicator reports on four employment measures: job expectations, job vacancies, new-hire compensation and recruitment difficulty. The LINE™ employment expectations index has consistently provided an early indication of the upcoming BLS numbers. The LINE™ "net increasing index" is calculated by taking the percentage increasing minus the percentage decreasing. The figure below shows how the LINE™ employment expectations index, in red, has correlated with the BLS numbers, which come out five weeks later. To view the full report, visit www.shrm.org/LINE.
Manufacturing
Overall vacancy growth has slowed considerably within the manufacturing sector, but manufacturers still face substantial difficulty in filling open positions. Slightly more manufacturers expect to expand their workforces in February 2007 than in February 2006 (56.5 percent versus 52.5 percent). Potentially attributed to seasonality, employment expectations within the manufacturing sector climbed from 28.2 in January to 46.3 in February. The February 2007 index (46.3) is above the level of February 2006 (41.4). For exempt employment, the most significant difference between 2007 and 2006 is the percentage of manufacturers reporting fewer vacancies. That percentage rose from 8.0 percent in January 2006 to 17.2 percent in January 2007. On a year-over-year basis, manufacturers experienced much slower growth in nonexempt vacancies. The nonexempt vacancy index declined from 17.4 in January 2006 to 3.8 in January 2007. The January 2007 recruiting difficulty index (21.8) is above the level of January 2006 (17.0).
Service
More service sector firms expect to reduce their workforce in February 2007 than in February 2006 (18.7 percent versus 11.4 percent). Opposite of the usual seasonal pattern, the employment expectations index within the service-sector declined between January and February (41.6 to 26.5). In contrast to the manufacturing sector, the percentage of service-sector firms reporting fewer exempt vacancies declined from 10.6 percent to 7.1 percent. Service-sector firms experienced slightly faster growth in nonexempt vacancies. The nonexempt vacancy index increased from 21.2 in January 2006 to 23.2 in January 2007. The January 2007 recruiting difficulty index (4.8) is below the level of January 2006 (7.9).
The LINE™ index is an economic indicator that identifies early economic trends and changes in the national job market by surveying human resource (HR) executives at manufacturing and service-sector firms. The indicator is released at 8:30 am ET on the fourth Tuesday of each month.
The Society for Human Resource Management (SHRM) is the world's largest association devoted to human resource management. Representing more than 210,000 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 550 affiliated chapters within the United States and members in more than 100 countries. Visit SHRM Online at 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.
Contacts:
Jeanene Harris 703-535-6356
Will Gray 703-535-6012
# # #
Related Articles:
Great Part Time Small Business Startup Goals
There is a trend growing in America's workforce of a large number of people who want to try their skills at a small business startup company. With the flexibility and lucrative rewards available with your own small business startup, you can devote more time with your family, attend all of your kid's recitals and team sporting events without the need to ask your boss for the time off. Those people who begin a small business startup will also have more potential income than what they would have if they work at a normal job. Today, the internet and many other technological advances, entrepreneurs have many more options for starting their very own business with little cost. Gift baskets are a superb idea for a small business startup. Being th ...
Sources Of Grants For Business Startup
Probably the greatest concern any would-be entrepreneur has initially is funding. When starting a business, the old saying that you need to spend money to make money holds true. However, if you know where to look, there are quite a few resources you can tap to help you find the money you need. One of the best sources for business startup funding is a grant. Provided you have a feasible business, you could apply for one of these so you could get your business running in no time.
Tips For Small Business Costs
Many first-time business owners are completely overwhelmed or unprepared by the amount of small business costs associated with operating a business. Small business costs often lead to the failure of many businesses, especially during the first year, or they even prevent them from getting started in the first place. Through a wide array of government and private programs, however, many small business owners have helpful options to help them finance their mounting small business costs.
Women-Owned IdeaLearning Group Receives Small Business Administration Loan Through US Bank
The federal Small Business Administration’s Small Business Development Center approves a business loan for women-owned IdeaLearning Group, an employee training and development company based in Portland, Oregon.
Randy Leiser to Speak at IT Financial Management Association Conference in San Antonio, March 12, 2008
Planview Executive in Residence to Focus on Employing Project Portfolios for a Strategic Approach to Financial Management.
Investors are Looking for Alternatives to Short Term Loans as the Real Estate Investment Market Changes from Flipping to Renting
The housing market is changing and those who are looking for an investment that can create instant profit are turning to renting properties instead of flipping properties. The rental market is strong and there are many opportunities for good solid investments. It is true that home sales are declining and that there is more money to be made in the rental market. Sum Total Financial Management has the ideal program to give investors the financial edge they need to effectively compete in this changing market. Sum Total Financial Management is announcing a program for investors looking to purchase rental properties. This inspired new program uses IRS acceptable methods that allow for property ownership "outside" of an IRA while using ...
When do You Need a Financial Management Company on Your Side?
We live in a crazy world. Someone ought to sell tickets.
FreeBalance Demonstrates Government Resource Planning (GRP) Solution at Financial Management Institute of Canada, Public Sector Management Workshop 20
Annual workshop to explore "Cresting the Wave – Innovations in Accountability" theme
FreeBalance Participates in Regional Public Financial Management (PFM) Conference in Livingstone, Zambia
Annual ESAAG event to explore contribution of PFM in addressing fiscal impact of financial crisis
INPUT: $2 Billion in Opportunities from Financial Management Line of Business
Almost $2 billion in FM LoB opportunities exist across the Civilian and Defense Markets which target the short-term sustainment of legacy systems as well as the long-term consolidation of modernized financial solutions, according to new report recently released by INPUT (), the authority on government business.
Software Eases Families’ Financial Management
GreenSherpa™ Offers Solutions for Tax Season Resolutions
Ways To Come Up With Business Startup Money
Business start up money is one of the most important and difficult issues to face if you are trying to start your own business. No matter how good your ideas, how much you know about business management, or how much experience you have, if you don't have the right business start up capital you will never succeed. Fortunately, there are many ways to get a business start up grant or loan. Unfortunately, however, these can be more trouble than they are worth.
Dahlia Web Designs LLC to Provide Financial Management Services to Ray Hooper Design LLC
Dahlia Web Designs LLC will provide financial management services to e-commerce business Ray Hooper Design LLC.
Home Based Business Startup Requires Dedication And Discipline
A common cause of home business startup failures is the fact the person operating the home business was unable to find enough discipline needed to run their own business out of their home and quickly found being at home all day and having to set their own hours was harder than they could have imagined
PEO Services - Human Resource Management
Human resource management is responsible for maintaining the records are current or up-to-date. However it is one of those responsibilities that do not directly add to the earnings of the business. Being as resource consuming as it is, businesses would do good to outsource human resource management to a Professional Employer Organization (PEO).