Look for new job creation in 2011

November 29, 2010 at 10:25 am | Posted in Uncategorized | Leave a comment

Most economists agree that the worst is behind us, according to an article in CNNMoney.com, and that new job creation will pick up modestly. “But worries about the slowpoke economy and the possibility of a double dip will keep companies from adding enough positions to make a serious dent in joblessness,” says reporter Anne C. Lee. The consensus among 46 forecasters recently surveyed by the National Association for Business Economics is that the 2011 unemployment rate will be around 9.2%, down from the current rate of 9.6%. “It’ll take another six years for unemployment to get back to pre-recession levels, according to estimates by the Congressional Budget Office,” writes Lee.

The encouraging news in the CNNMoney.com article is that America’s best employers to work for are hiring. Meanwhile, the draconian cost-cutting measures adopted during the downturn are becoming history: Nearly all companies that slashed their 401(k) match say they will have restored all or a portion of it by next summer, according to Towers Watson. Salary freezes are fading fast too, the Buck survey found. If you’re among the 14.8 million Americans who are still unemployed, however, 2011 continues to look bleak, but not hopeless. Though little new hiring is planned for the first half, openings should expand later in the year — as long as the economy encounters no major new setbacks.

If Congress passes a new stimulus for small businesses — most likely by making it easier for firms to borrow — hiring could exceed forecasts, according to the CNNMoney.com You can track the monthly jobs report from the Bureau of Labor Statistics at bls.gov. The forecasted pickup of 153,000 jobs a month on average (fewer than 150,000 early in 2011, as many as 175,000 late in the year) should bring the unemployment rate down to 9.2% by the end of 2011, which is good news for future graduates.

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