The National Association for Business Economics released the results from their latest survey and it shows that some positive momentum could finally be building in the labor market. They say plans to hire are at the highest level they’ve been in over a decade:
“NABE’s January 2011 Industry Survey confirms that the underpinnings of the U.S. economy continue to strengthen,” said Shawn DuBravac, Consumer Electronics Association. “The number of firms expressing positive hiring plans is at a level not seen in over a decade—a sign of improving labor-market dynamics. Supporting these hiring plans, industry demand continues to move higher, and profit margins are expanding. Firms are showing greater optimism, with one in five respondents expecting economic growth between three and four percent. Firms are increasing their plans for future capital spending. A majority of respondents anticipate no increase or decrease in investment spending or employment in response to new tax policies, suggesting business decisions are being driven by the fundamentals of an improving economy.”
Recent labor data has shown tepid signs of improvement, but with the recovery apparently gaining traction it would not be surprising to see future payroll reports showing improvement.