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Labor-market indicator signals improvement

August 12, 2009 on 2:18 pm | In All categories, economy/job market, surveys | No Comments

On the heels of last week’s surprising government report of a slight dip in the unemployment rate, SHRM offers some hopeful news about the outlook for hiring.

More companies in the manufacturing and service sectors are hiring in August compared with the first few months of 2009, according to the Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment (LINE) survey for August 2009. Highlights are below, and to access the full report, please go to SHRM LINE August 2009.

• Hiring expectations in August lag those from a year ago. Though hiring is down in August compared with the same time in 2008, more companies in both the manufacturing and service sectors will add jobs rather than conduct layoffs for the second month in row.
• There is some evidence that the job market is gradually improving. August marks the highest level of hiring in the manufacturing sector since October 2008. In the service sector in August, the hiring rate will surpass the layoff rate for the fourth consecutive month.
• Wages and benefits packages for new workers continue to decline. New-hire compensation rose at the slowest rate in July in five years in both the manufacturing and service sectors.

While it is still very tough in the job market right now, this small signal is worth paying attention to. In the next month or so I hope to see similar small signals to begin to ease the harshness facing so many jobless people.