Is the economy improving and does it have a positive impact on jobs? We believe it is and we believe it does. Gains in employment, however, will be slow and will vary by industry. Health care will continue to show gains, while city and municipal employees may continue to see hard times.
The Christmas holiday sales were reported to be the strongest since pre-recession 2006. CNBC published an article yesterday titled “Less Worried About Layoffs, Job Holders Spend More” (http://www.cnbc.com/id/40997480) that attributes part of the improved sales picture to less employees being concerned about loosing their jobs. The Bureau of Labor Statistics reported job gains of 103,000 in December, with a drop in the unemployment rate to 9.4% (mostly do to less people looking for jobs). The major employment gains in December were in leisure and hospitality and in health care. Ben Bernanke, Fed Chairman, forecasts that it will take four to five years to get employment back to pre-recession levels; he is using, in part, the current Bureau of Labor Statistics numbers.
Another interesting article, worth a quick read is Cindy Perlman’s article on cnbc.com titled “11 Signs the Job Market is Improving in 2011” (http://www.cnbc.com/id/40968766). She takes an interesting perspective about the job recovery signs.
As we said in our Blog yesterday, general signs are interesting but what’s important is how this affects you and your business.
2011 Kubica & LaForest
If you enjoyed this piece, please consider sharing it!
