Employment Picture Improving, NABE Survey Says

Washington, DC, July 19, 2010--The employment picture appears to be improving as the National Association for Business Economics said employers grew payrolls for a second consecutive quarter this year. The percentage of firms increasing staff levels grew to 31% in the quarter, compared to only 6% in the same period a year ago.

At the same time, the percentage of employers cutting jobs continued to move lower.

The NABE survey showed that 39% of companies expect to add employees over the next six months, the highest level of planned hiring since January 2008.

The survey, based on responses from 84 NABE economists who work for private-sector firms and industry trade associations, also indicated that the pace of the economic recovery slowed in the second-quarter.

Industry demand grew at a slower pace in the quarter, the survey said. Corporate profits grew as price and cost pressures remained tame. About one out of four firms increased capital spending versus the previous quarter, and a growing number expect to continue investing over the next 12 months, according to NABE.

While economic activity is expected to remain positive this year, more economists lowered their expectations for 2010 gross domestic product. Only 20% expect GDP will grow more than 3% this year. That's down from May, when 24% expected such growth.

Still, the majority of economists in the survey expect GDP will top 2% for the year.