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Economy: Hiring Outpaces the Economy (Conference Board)

Monday, January 07, 2013

Press release from the issuing company

Comment on U.S. Bureau of Labor Statistics Employment Situation Report: Kathy Bostjancic, Director of Macroeconomic Analysis, The Conference Board

"With a gain of 155,000 jobs in December, the employment situation continues to improve despite slower output growth in Q4 2012 that will likely persist through the first half of 2013. The current moderate pace of hiring could be sustainable if companies believe that economic growth is poised to accelerate a bit in the second half of the year as the fiscal drag wanes and the housing recovery strengthens. The key to boosting the labor market is stronger demand – a task made slightly more difficult with new higher withholding rates. Additional uncertainty surrounding the next round of political wrangling over the fiscal budget also leads businesses to be hesitant in hiring new workers. Weakened business and consumer confidence doesn’t bode well for any acceleration in the hiring trend."

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