Economist see better business climate, employment situation in 2013

The recovery from the Great Recession has been greeted with tepid optimism by many economists. While consumers and businesses have routinely expressed renewed hope for the economy in 2013, analysts have so far been more cautious to voice their full-throated support. That is until recently, when a new survey of national economists indicated they were more encouraged about possible economic gains in 2013 than they had previously been. Many respondents stated employment was a driving factor in their forecasts, and recruiting agencies will become more important for expanding businesses in the new year.

Growth will improve throughout 2013 
According to the National Association for Business Economics (NABE) Industry survey, 50 percent of poll participants believe the economy will grow at a pace of 2.1 percent or higher during the next four quarters. The response is a marked improvement from the 36 percent who said the same in a similar survey last October.

“The panelists expect modest growth in the economy in 2013 as a whole, which accelerates steadily as the year progresses,” said Dr. Nayantara Hensel, chair of the NABE Outlook.

Employment is key factor for economic gains
The latest survey, conducted between late December last year and early January 2013, found 34 percent of firms plan on expanding their payrolls during the next six months,. This rate represents the highest percentage of such answers since April 2012. Only 2 percent see their companies cutting payrolls through layoffs in the next year.

The optimism for 2013 hiring was well-founded by hiring increases in late 2012. Twenty-five percent of respondents said employment grew at their respective firms during fourth quarter 2012, on par with levels seen in the first half or 2012.

Panelists forecasted the average unemployment rate will run at around 7.7 percent in 2013, which despite not being a noteworthy decrease from current levels, is down from the forecasted of 8.1 percent economists anticipated for 2012. Additionally, survey respondents pegged average job creation levels to reach 165,000 new positions per month in 2013.

By several accounts, the economy is slated to improve at a rate steadily above those of previous years since the economic collapse. Expanding businesses means more employment opportunities and a need for competitive talent recruitment. Working with staffing agencies remains an established pathway to hiring success.