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Hiring in the U.S. manufacturing sector is expected to hit a four-year high in May and hiring in the service sector is expected to reach a three-year high, according to the leading indicators of national employment report released today by the Society for Human Resource Management.
The report’s survey found that 57.0 percent of manufacturing companies plan to hire in May while 4.1 percent plan to reduce their workforces for a net increase of 52.9 percent, up from a net increase of 42.9 percent in May 2013.
Among service-sector employers, 46.6 percent plan to add staff in May and 7.7 percent plan to cut their workforces for a net increase of 38.9 percent, up from a net increase of 37.1 percent in May 2013.
“This hiring increase, however, is not translating into higher compensation packages for new hires,” Jennifer Schramm, manager of workforce trends at SHRM, said in a press release.
A net 4.5 percent of manufacturing respondents reported increasing new-hire compensation in April, down from 8.0 percent in April 2013. In the service sector, a net 6.6 percent of companies increased new-hire compensation in April, down from 7.9 percent in the same month a year ago.
“HR professionals are also reporting a rise in recruiting difficulty in both sectors in April, a sign that the labor market may be heating up,” Schramm said.
The report is based on a survey of human resource executives at more than 500 manufacturing and 500 service-sector firms.