Business Hiring Forecasted To Increase

Here is a study from Counselor Magazine.

Nearly one-third of U.S. businesses added employees during the second quarter, according to a new survey released by the National Association for Business Economics (NABE). Data also shows that 39% of respondents expect to hire more workers over the next six months, the largest display of optimism since January of 2008. “NABE’s July 2010 survey confirms that the U.S. recovery continued through the second quarter, although at a slower pace than earlier in the year,” said William Strauss of the Federal Reserve Bank of Chicago.

According to NABE data, manufacturers reported the strongest increase in demand and profitability between April and June, while the finance, insurance and real estate sectors had the slowest growth. More than half of respondents reported sales increases in the second quarter, with 25% reporting higher profit margins. “Industry demand increased for a fourth consecutive quarter,” said Strauss. “Price and cost pressures were contained, allowing profits to edge higher.”

Additionally, about 20% of economists surveyed by NABE believe gross domestic product (GDP) will expand by more than 3% this year and 67% believe the economy will expand by at least 2%. During the first quarter, GDP grew at an annual rate of 2.7%, according to government estimates. Following a recent policy meeting, the Federal Reserve now expects GDP to grow between 3% and 3.5% this year, down from its earlier expectation of growth as high as 3.7%.