Hiring expectations highest since 2006
October 25, 2010 | Mark Thomton | Print Article | Email this Article
As companies continue to experience increased profits and demand slowly creeps back up, economists paint a much more optimistic picture for future hiring.
According to a recent survey from the National Association of Business Economics, expectations for hiring over the next six months have risen to the highest levels since 2006.
Any hiring news bodes well for the commercial real estate industry as vacancy rates continue to remain high in the Chicago area. Very little positive headway has been made in absorption this year, as firms continue to downsize, albeit at a much slower rate than when the recession began.
The national unemployment rate still remains high at 9.6 percent, but NABE economists believe that number will decrease to 9.2 percent by the end of 2011. That job growth may not be the robust increase that many are hoping for, but most economists agree that this recovery will be long and gradual, with unemployment possibly reaching 7 or 8 percent by the end of 2012.
Nevertheless, with U.S. companies experiencing increased sales overseas, many have reached a critical juncture and must expand hiring if they wish to keep up with the pace of demand. More than half of the survey’s respondents claimed that a portion of their firm’s sales came from overseas sources.
This can be directly attributed to the current monetary policy of keeping the dollar weak. Many have criticized this policy, rightly pointing out that it may lead to inflationary conditions. On the other hand, it can clearly be argued that this policy increases the chances for domestic employment growth, which the nation desperately needs.
Tags | Chicago, economy, Hiring, Jobs, moentary policy, U.S., unemployment
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