ManpowerGroup News Release (03/12/13)

Hiring decision makers continue to take a measured but optimistic approach to hiring plans for the second quarter of 2013, according to the latest Manpower Employment Outlook Survey released today by ManpowerGroup. According to the seasonally adjusted survey results, the Net Employment Outlook for the quarter is +11%, a 1 percentage point decrease from the first quarter of 2013 and slightly elevated from +10% during the same period last year.

Employers in all 50 states, Puerto Rico, and the District of Columbia report positive hiring plans. The overall percentage of employers who anticipate staff reductions is at 5%. This is the smallest percentage of employers planning to reduce headcounts since the third quarter of 2000. Approximately 73% of employers plan to maintain current staff levels during the second quarter, rivaling the previous strongest percentage in this category, which was last at this level in the first quarter of 2011.

Washington Post (03/12/13) Ylan Q. Mui

The U.S. Federal Reserve increasingly has become interested in setting policy that will influence the labor market, arguing that reducing unemployment is critical to the economic recovery. The Fed says it will keep interest rates at historic lows until the unemployment rate declines to at least 6.5%. The high unemployment rate has “imposed huge burdens on all too many American households and represents a substantial social cost,” says Fed vice chairman Janet Yellen. “I believe it’s appropriate for progress in the labor market to take center stage in the conduct of monetary policy.”

However, the connection between interest rates and employment is not clear. Although low interest rates spark consumer demand and help increase companies’ profits, that doesn’t necessarily translate into hiring. Many companies remain reluctant to hire even though sales have risen. Furthermore, the Fed has no influence over intrinsic changes to the economy, such as the move away from manufacturing to service jobs.