Wednesday, August 12, 2009

US: Economy’s better, but jobs are slow.

Still very cautious, that’s the attitude out there in US, though the economy is showing some ease.

U.S. employers who have cut jobs over the past year are in no hurry to start hiring again just because the recession is tapering off, reports wired news service AP.

It noted that from a North Carolina machine maker to an Oregon heating-and-cooling company, small business owners say they need to see several months of rising sales before they start adding staff.

“Because labor is the biggest expense for most companies, that kind of caution is typical at the end of recessions.

“After the last one, in 2001, unemployment kept rising and didn't peak until June 2003 - 19 months into the economic recovery,” the report said.

It also noted that some economists say unemployment may not return to healthy levels until 2013.

“Companies have been slashing workers' hours, squeezing more work out of the employees who are left and relying on cheaper temporary staffers to fill the gaps,” AP reported.