Manufacturers Adding Jobs in July

July 2, 2014
Increases in manufacturing hiring is projected to reach four-year highs for the month of July.

Over half of manufacturers (53.2%) will add jobs in July, according to the Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment survey, released July 2.

Increases in manufacturing hiring is projected to reach four-year highs for the month of July, reports Theresa Minton-Eversole SHRM editor. The manufacturing sector’s hiring index will rise by 14.8 points compared with July 2013.

“With hiring rates trending up, it makes sense that recruiting difficulty continues.” said Jennifer Schramm, SPHR, manager of SHRM workplace trends and forecasting. "We are also finally seeing a slight improvement in the new-hire compensation index.”

Survey findings include:

  • A net total of 22.1% of manufacturers reported increases in exempt vacancies in June (30.9% reported more vacancies, 8.8% reported fewer), up 1 point from June 2013.
  • A net total of 28.1% of manufacturers reported an increase in nonexempt vacancies -- a rise of 3.2 points compared with June 2013 and a four-year high for the month in the sector.
  • A net of 25.9% of manufacturing respondents reported having more difficulty with recruiting in June, an increase of 12.1 points from June 2013.

Pay has also increased for new hires compared with a year ago according to Schramm.

In the manufacturing sector, a net total of 10.9% of respondents reported increasing new-hire compensation in June, an increase of 3.2 points from June 2013.

“SHRM’s latest Employee Job Satisfaction and Engagement survey report shows that compensation is now employees’ number one job satisfaction factor, and employers may be starting to experience pressure to bring wages up in response to a more competitive recruiting environment,” explained Schramm.

Overall, however, the index’s data show that most organizations are not increasing new-hire compensation. This is consistent with recent BLS findings on real average hourly earnings, which fell 0.1% in May 2014 compared with May 2013.

About the Author

Adrienne Selko | Senior Editor - MH&L, IW, & EHS Today

Adrienne Selko has written about many topics over the 17 years she has been with Endeavor Business Media and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank.

She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is a senior editor at Material Handling & Logistics, EHS Today, and IndustryWeek. 

Editorial Mission Statement:

Manufacturing is the enviable position of creating products, processes, and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I Find Manufacturing Interesting: 

On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated, and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.