Finally, a Wave of New Jobs Approaching ; from Airlines to the Factory Floor, Hiring Starts to Outweigh Job Losses

By Ron Scherer writer of The Christian Science Monitor | The Christian Science Monitor, October 27, 2003 | Go to article overview

Finally, a Wave of New Jobs Approaching ; from Airlines to the Factory Floor, Hiring Starts to Outweigh Job Losses


Ron Scherer writer of The Christian Science Monitor, The Christian Science Monitor


At last, an economic recovery with jobs.

A software engineer in San Diego finds a job only two months after being laid off. An aluminum company in Muscle Shoals, Ala., is recalling workers, some laid off as long ago as 1996. And a budding restaurant chain based in Lubbock, Texas, will be hiring 900 chefs, waiters, and dishwashers over the next 14 months.

These are just some of the ways an economy - now described by even some experts as sizzling - is finally creating jobs faster than they are lost.

Economists expect that evidence of this change will start to show up over the coming months as up to 150,000 new jobs are created each month. Hiring appears to be happening across the board: from airlines who are recalling laid-off workers to manufacturers who can no longer meet orders simply by turning on new machines. Even Silicon Valley has "help wanted" signs.

"All signs are pointing to more jobs," says Sung Won Sohn, chief economist at Wells Fargo Banks in Minneapolis. "We are at the point where companies need more people to meet the increase in demand in their businesses."

This shift has important economic ramifications. More jobs will keep consumers spending instead of worrying about layoffs. It will also give businesses confidence that the long-anticipated economic recovery has some depth to it. And it comes at a time when the economy needs help sustaining the stimulative effect of both tax cuts and lower interest rates, which has been waning.

"A resumption of job gains more than adequately fills the gap," says Richard DeKaser, chief economist at National City Corp. in Cleveland. "When you have income realized through work, about 98 percent of it is out the door as soon as it's earned."

The hiring spurt could also have important political ramifications, particularly as the 2004 presidential race nears. A better employment picture could relieve some of the criticism directed at the Bush administration, and it could make Democrats rethink their campaign strategy.

Improvement slow to register

But while the economy will be creating new jobs, economists warn that the improvement won't show up initially in the widely watched unemployment rate. In fact, the rate - currently at 6.1 percent - might rise over the coming months as discouraged workers start looking for work again. "The rise in the unemployment rate is actually a good sign in the early stages of a recovery," says Mr. Sohn. "The rate shouldn't start dropping in earnest until 2004."

Still, there have been incipient signs for weeks that improvement is on the way. Initial unemployment claims have been trending down, including last week. Last month, the Department of Labor reported a gain of 57,000 jobs, the first net increase in eight months.

In surveys, businesses say they intend to hire more workers. This is supported by anecdotal evidence. IBM says it will create 10,000 new jobs next year in consulting and software. Union Pacific, the nation's largest railroad, will add 1,000 conductors and engineers before the end of the year. And Hyundai, the Korean vehicle company, is building a 400-employee tech center outside of Ann Arbor, Mich.

In addition, reports of new layoffs are slowing down. "The layoffs and working out of the bubble from the excesses of the 1990s is almost finished," says John Challenger, whose outplacement firm, Challenger, Gray & Christmas, tracks downsizings.

In fact, many companies have scaled down so much that they need to start to rebuild their workforces. That's what is happening at a former Reynolds Metals plant, now called Wise Alloys in Muscle Shoals, Ala. Over the past four years, the plant, which produces aluminum sheeting for the food and beverage industry, reduced its workforce by about 33 percent. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Finally, a Wave of New Jobs Approaching ; from Airlines to the Factory Floor, Hiring Starts to Outweigh Job Losses
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.