Hiring on the Rise

Well if you’re concerned about that ugly 9.5 percent unemployment rate, then here’s some good news. According to the National Association for Business Economics (NABE), more employers are hiring and are expected to continue to hire over the next few months.
More than 31 percent of employers surveyed by NABE increased hiring during the second quarter, according to a new survey. That’s the second quarter in a row the survey has shown that employers increased staff levels, and it’s well above the 6 percent increase seen in the second quarter of 2009.
The good news continues, as the NABE survey also indicates that 39 percent of employers will increase staff levels over the next six months. And fewer employers are letting staff go, with only 14 percent of firms downsizing, compared to 36 percent at this time last year.
But (there’s always a but) the survey did have a big underlying problem.

The NABE report expects the economic recovery to continue, but not as rapidly as prior surveys indicated. While 24 percent of respondents thought that the economy would grow by more than 3 percent in April, only 20 percent of respondents say the gross domestic product (GDP) will grow by more than 3 percent in the current survey. If the economy sees smaller growth in the GDP, businesses could hire less than expectations show.
“The labor market continued to improve, with increases in current hiring and a rise in the percentage of firms planning to add workers over the next six months,” said Federal Reserve Bank of Chicago economist William Strauss in the report (and as dryly as possible).
Still, hiring and expected hiring continues to grow. That’s a great sign.