Fewer service sector employers plan to increase hiring in December compared with the same time last year while employment expectations are down in manufacturing, according to the leading indicator of national employment index (LINE) report from the Society for Human Resources Management and Rutgers University.

The index's survey found that 41.4% of manufacturers plan to increase their staffs in December, compared with 40.7% last December. However, 13.8% plan to decrease their staffs next month for a net increase of 27.6%. That compares to a net increase of 31.5% for December 2006.

In the service sector, 38.3% of employers plan to add workers this December compared with 50.3% last year. Fewer service sector companies plan to decrease staff, but the net increase for December was 33.3%, compared to 41.4% last year.

The percent of manufacturers increasing new-hire compensation fell to 8.7% in November from 12.6% in November 2006. Service sector employers raising new-hire compensation fell to 8.5% from 11.0% last year.

The LINE report surveys human resources executives at more than 500 manufacturing companies and more than 500 service sector firms.