Global Insights: Employers Will Hire Soon

A recent article by Global Insights says that employers can be expected to start hiring people again soon.

Faced with a jobless recovery and the most stagnant job market since World War II, workers and investors are searching for signs of renewed job creation. Indeed, recent initial unemployment claims have slid below 400,000 to reach their lowest levels in months. But this was countered by a recent Challenger, Grey, and Christmas report indicating that layoffs surged 43% in July from the prior month. This news was further augmented by a surprising 5.7% year-over-year increase in second-quarter labor productivity, indicating that companies are getting more from less.

How should we interpret these conflicting signs? And when, if ever, will employers be confident enough to bolster their payrolls? The short answer is soon. Global Insight believes we need to look no further then the recent surge in temporary help employment to find the answer: 122,000 seasonally adjusted jobs added since April. This industry tends to be a bellwether for overall employment movements.

Let's hope Global Insights is right. Everyone in economic development is ready to get back to creating more jobs.

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