Hiring in the U.S. manufacturing sector is expected to decrease on a year-over-year basis in January, according to the leading indicators of national employment report released today by the Society for Human Resource Management. However, hiring in the service sector will increase.

“The somewhat mixed findings in the January LINE report point to a stronger service-sector hiring picture compared with manufacturing,” Jennifer Schramm, manager of workforce trends at SHRM, said in a press release. “But overall, most economists are predicting improved labor market conditions in 2014.”

The report’s survey found that 37.6 percent of service-sector companies plan to hire in January while 8.7 percent plan to reduce their workforces for a net increase of 28.9 percent, up from a net increase of 21.4 percent in January 2013.

Among manufacturing employers, 37.4 percent plan to add staff in January and 10.7 percent plan to cut their workforces for a net increase of 26.7 percent, down from a net increase of 31.2 percent in January 2013.

The report is based on a survey of human resource executives at more than 500 manufacturing and 500 service-sector firms.