| Log In | Register Now
By Leah Schnurr
March 24, 2011 5:26 PM EDT
U.S. companies are dusting off their "help wanted " signs but the pipeline of new jobs is being filled at only a trickle.
After slashing jobs swiftly in response to the cratering economy and credit crisis of 2008 and 2009, employers are treading cautiously, waiting for clear signs of economic improvement and that their own sales can be sustained.
Many firms find themselves in a catch-22 situation: They are wary of having too many staff if the recovery slows but don't want to be caught short-handed if business takes off.
For many, it boils down to simple math -- if the revenues are there, they will hire. That means job openings will likely be gradual rather than broad-based.
"As long as there are clients interested in wanting to hire us, we'll continue to hire people," said Mike Lieberman, the head of Philadelphia-based firm Square 2 Marketing.
Follow us
His company, which designs and handles marketing campaigns for entrepreneurs, has taken on two new employees this year, bringing its staff up to 14. Lieberman says the company will probably hire three or four more people in 2011 but will first have to see if revenue meet targets.
"It is, of course, the chicken and the egg -- do you hire more so that you can sell more, or do you generate more sales until you're comfortable hiring?" said Rafael Pastor, chief executive of Vistage, a organization of business executives.
THE WAITING GAME
As conditions improve, economists expect hiring growth will come in large measure from small and medium-sized companies, such as Square 2 Marketing, helping to offset expected job losses in the cash-strapped public sector.
Recent jobs data has been encouraging. Employers hired workers at the fastest pace in nine months in February, according to government data, and other economic releases have shown employment gauges rising.
Last month, manufacturers' willingness to hire improved at its strongest pace in decades, while small firms began creating jobs in February.
Data on Thursday suggested the improvement in the labor market was becoming sustained. New claims for jobless benefits edged down to 382,000 last week, and the four-week moving average of new claims dropped to its lowest level in more than 2-1/2 years.
A reading below 400,000 is seen as a sign of steady job growth. Ian Shepherdson, chief U.S. economist at High Frequency Economics, said he expects the number to fall to 300,000 by the end of the year.
So far, the U.S. economy has restored only a fraction of the 8 million jobs lost during the recession, and economists see only continued slow progress.
We value your privacy. Your email address will not be shared.
