Economic Improvement Hinges on Employment

Schramm, Jennifer, HRMagazine

Although the U.S. economy has improved on several fronts, the labor market remains exceptionally weak. In turn, that weakness leads to debate about whether the United States and countries around the globe are in a jobless recovery, and what this might mean for recruiting and wage trends.

By fourth quarter, experts were discerning a number of positive if tentative signals that at least some key aspects of the global economy were recovering. In fact, several forecasters say the bottom of the Great Recession was reached last June. The U.S. Federal Reserve reports that economic activity was continuing to stabilize in its 12 districts, with analysts in most districts noting that the outlook for economic activity in their regions was cautiously positive.

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U.S. stocks began to rise as early as March, and according to the September Credit Managers' Index from the National Association of Credit Management, U.S. credit conditions and performance were improving, reaching peak levels for the previous 11 months. There have even been some positive signs in the U.S. real estate market. Single-family housing showed some improvement in the second half of the year, most likely stimulated by the tax credit for first-time home buyers and by overall improved affordability.

Cautious …

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Publication information: Article title: Economic Improvement Hinges on Employment. Contributors: Schramm, Jennifer - Author. Magazine title: HRMagazine. Volume: 54. Issue: 12 Publication date: December 2009. Page number: S5+. © 1999 Society for Human Resource Management. COPYRIGHT 2009 Gale Group.

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