U.S job market opening up its arms- MAN, GM

Northern, WI 03/13/2013 (avauncer) - The U.S job market is on a rebound despite the huge sequestrian cuts that the country’s lawmakers are now trying to trim. In January the least number of workers were fired and it finally seems that the U.S expansion can be a sustainable one. In December, 1.57 million had been out of jobs in the U.S while the number dropped to 1.51 million in January. There had been a major slump in the number of available job openings in December when the number had stood at 177,000. This number has now climbed to 81,000. Findings show that payroll gains have been higher as well.

Company sales improving

However this change can be attributed to the fact that there have been reduced dismissals and may not be related to any surge in hiring. This is a straight indication that company sales have improved and are now strong enough for them to retain their existing staff. The vice chairman of the Federal Reserve, Janet Yellen said that discharges and layoffs that are a share of the total employment have reversed to their pre-recession levels though the hiring rate is still very dismal.

Progress has to speed up

This has to show an increase in the future. The quit rate is also not too high at the moment. This generally is a signal that workers feel that there are job openings and that their chances of getting rehired are better. At the moment the unemployment rate in the country stands at 7.7 percent. Only a real speed-up in the labor Market will help it make further progress and result in a significant drop in this rate. The drop in firings is an indication that the labor-force components are very tight for businesses and that the economic outlook is looking a little better now.

Fire-hire statistics looking better

In the 12 months ending in January, a net 2 million jobs were created. This represented close to 50 million separations and 52 million hires. In January, the number of unemployed Americans stood at 12.3 million and this was an indication that every job opening was vied by 3.3 people. At the beginning of the recession in December 2007, this number stood at 1.8. Second quarter hiring plans in all 50 U.S states and the District of Columbia were reported to be positive. This report has been based on a survey of over 18,000 companies carried out by Manpowergroup Inc (NYSE:MAN).

Some industries better off than others

Those working in the leisure, hospitality, business services and professional industries were the ones with the most positive outlooks. Some companies are looking to expanding their businesses and General Motors Company (NYSE:GM) is one among them. The company has plans of expanding its technology operations center which is in the Phoenix area by hiring at least 1000 staffers. The final aim is to add at least 7,500 workers to its information technology section. In contrast, there was a sudden fall in industrial production the U.K, in January and the country might be heading towards another recession just as it is recovering from the first wave.

Shares of Manpowergroup Inc (NYSE:MAN) went down by 0.32% to close at $56.85

Shares of General Motors Company (NYSE:GM) went up by 0.21% to close at $28.37