US Firms See no Change in Job Market
The National Association of Business Economics (NABE) said that. US companies have no immediate plans to increase their workforce, but also do not intend to conduct massive layoffs in the next six months -- putting the labor market in a longstanding stalement.
A new industry survey showed that private companies in the United States have no immediate plans to increase their workforce, but also do not intend to conduct massive layoffs in the next six months -- putting the labor market in a longstanding stalement.
Based on its study, the National Association of Business Economics (NABE) on Monday said that 59 percent of US companies have no plans for additional payroll in the coming months, up from 49 percent in July and the highest percentage since January 2010.
Meanwhile, 29 percent of the companies said they expect to increase payroll, down from 43 percent; while 3 percent said that they would layoff workers.
Analysts, citing the survey, said that job growth will remain slower to help keep US unemployment rate below 9 percent.
But they expressed confidence that companies' sentiments will soon change once the European debt crisis was settled and with the Obama administration beefing up budget policy to improve economic outlook.
The study, on the other hand, showed that businesses are now cutting back on capital spending amid economic uncertainty. In fact, a third of US firms said they were increasing investment in capital, down from 41 percent in July.
Meanwhile, almost 60 percent planned no changes to their capital spending budgets, up from 53 percent three months ago.
At least 68 respondents participated in the survey, which was conducted between September 20 and October 5.