Lisa Simpson
Dec 22,2009
In: Finance

Companies are Now on the Recruitment Mode

The US is on the verge of recovery. Companies that had so far been slashing work force now are interested in doing just the opposite. They want to rebuild the work force. Economists and business leaders are now tossing up new ideas about how to create more jobs.

The Recession, after all, saw loss of more jobs than ever. However, in a recent report, only 11,000 people lost their jobs last month and that was the best news ever since the Recession began. The unemployment level actually went down from 10.2 per cent to 10 per cent President Obama observed that sometimes the news would be good and at other times it would be bad but the overall trend is optimistic. The US is still suffering the effects of the worst downturn in years that sent the unemployment levels to an all-time high.
Experts say that economy will soon take a turn for the better. The scenario would definitely improve in March 2010 when job cuts would give way to creation of more jobs. The economy would keep on growing throughout 2010. If that comes true, then definitely the recovery of the work force would happen much faster as compared to the earlier recessions. The previous recessions were in 1990s and 2001 but the severity of this one is much more.
It may be noted that 15.4 million Americans are still struggling to find jobs. However, there are signs of improvement. Above 50,000 temporary people have been hired and this is the first indicator of things to come. Soon companies may go in for permanent hiring. Employees have even started working for longer hours.
The rise in hours is definitely a positive trend and is getting reflected in the higher wages being received by workers in a week.

Nigel Gault, the chief economist for IHS Global Insight, says that a lot of companies have reached such a stage that they are not in a position to extract more work from the existing employees. That means they will either have to add hours or go on the recruitment mode. This again depends on executives’ confidence in the economic growth. Some observe that the unexpected improvement in November is a correction of the poor employment scenario in October. However, the Obama administration is confident that the surge in employment is the payback of the $787 billion pumped into the economy as stimulus package. This has saved and in the process created jobs for 1.6 million.

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