Jobs are ready to make a comeback!
As usual, it all comes back to the consumer. Consumer demand increased, and spending follows demand, of course, which provides the fuel necessary for economic growth. When enough of this fuel is expended, we'll finally see an increase in jobs -- and relief from what is soon to be double-digit unemployment.
For the first time since the start of the recession, more companies are planning to add positions rather than cut them in the next six months.
A survey by the National Association of Business Economics found that 24% of responding companies plan to grow their workforces in the next six months, with 20% planning cutbacks. Fifty-seven percent don't expect to make changes either way. Unemployment is expected to push past 10% next year and could reach as high as 10.5% in the second quarter.
Service companies could become the most aggressive hirers, with 31% saying they'll add positions in the next half a year. That's an increase of 16% from the April survey. Only 3% of them are planning to cut their staffs. The manufacturing sector isn't as positive, with 12% reporting that they expect to add positions.
Forty-four percent of the companies surveyed reported an increase in consumer demand, with only 21% seeing it go the other way, with only transportation, utilities and communication businesses posting net declines.
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