Jobs show potential to slowly come back

10.26.09
By Nicholas Storie

People who are struggling with debt brought on by unemployment may have a potential bright spot in the form of a new report suggesting that firms may be somewhat more likely to be hiring.

In the latest report from the National Association of Business Economists, only 12 percent of companies are actually adding jobs at this time. However, this is still an improvement over the survey's all-time low of 6 percent this summer.

The survey also found that the number of companies cutting jobs has fallen somewhat, with 31 percent now reporting that they are doing so. This is an improvement from the 36 percent of jobs that were cutting jobs in the previous report. The NABE also noted that for the first time since the recession began, more companies report that they are planning to add new jobs in the next six months as opposed to cutting them.

"Job losses have been moderating with an improved outlook for hiring over the next six months," an Associated Press report quoted William Strauss of the Federal Reserve Bank of Chicago as saying.

Another good sign is that companies have indicated a rise in capital spending over the past quarter, the first time since October 2008.

Economists have widely predicted that the expected recovery will be a largely jobless one, for different reasons.

With this in mind, members of Congress are currently working to extend unemployment benefits for the millions of workers who are on the verge of seeing them run out in the coming weeks. An extension has been blocked so far by partisan disputes, although a report on the New York Times website notes that a new effort is underway that could see benefits extended even more for residents of states that have higher unemployment levels.

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More companies are reporting an upswing in hiring, which is good news for struggling workers.