Big corporations are beginning to hire again, data from a variety of sources show. What does this trend mean to your small business? Bloomberg Businessweek recently reported that hiring seems to be on a steady upswing. After adding 236,000 workers in February, payrolls may add 216,000 new jobs in March, one expert cited predicts.
While job growth averaged 167,000 jobs per month in the second half of 2012, so far this year it’s reached about 200,000 per month. Another economist Bloomberg cites projects the U.S. will add 2.5 million jobs in 2013, up from 2.2 million last year.
Some other encouraging signs:
- While the overall U.S. unemployment rate is currently 7.7, it’s steadily decreasing.
- The number of unemployment claims is dropping, reaching 339,700 a week in the month ended March 16, for the lowest it’s been since February 2008.
- Temporary-help-services payrolls hit 2.58 million in February, the highest they’ve been since August 2007 and an increase from 1.75 million when the recession officially ended in June 2009.
- The housing market is finally strengthening, even in areas that were struggling long after the recession officially ended.
There are a range of reasons why companies are hiring, including:
- Stronger demand for products and services
- Need to replace employees who were laid off during the recession
- Easier access to credit and business loans stimulating growth
Meanwhile, a couple factors could hinder the newfound growth:
The government budget cuts brought on by the sequester could lead to federal government layoffs and a drop in payrolls caused by loss of government jobs. Ultimately, cuts could trickle down to reduced demand for services and products from private businesses, hurting those jobs, too.
Businesses could be reluctant to hire if the Affordable Care Act turns out to raise health insurance costs prohibitively.
What does job growth mean for your business?
- With large and midsized companies starting to ramp up, if you want to compete for qualified employees, now is the time to start thinking about hiring needs.
- Consider hiring temporary employees if you’re leery of taking on full-time, permanent workers until the ACA’s effect on your business shakes out.
- While companies of all sizes are having difficulty finding skilled, experienced workers, bigger companies are becoming more open to taking on less-skilled workers and providing on-the-job training. You may need to do the same.
Image by Flickr user bgottsab (Creative Commons)Google+