Consumer Spending Slows, Hiring Outlook Precarious
Cautious consumers may hurt the tenuous recovery, as household purchases grew at the slowest pace in a year, according to Commerce Department data. “Hiring going forward will, in large part, be defined by the demand of consumers,” said Challenger. “If companies aren’t growing quickly, they don’t need the workers, even if they have the cash to hire. Employers are still incredibly uneasy about the economy and don’t want to take any risks.” The biggest hiring announcements have come from the automotive sector, which through the first half of 2012 has announced over 12,000 new jobs in the US, according to Challenger. Other industries that have announced hiring plans include industrial manufacturing with over 7,000 through June, and the financial sector with just under 7,000. “The automotive industry is beginning to make a comeback as makers introduce new technologies that make cars more efficient and desirable. This increase in manufacturing trickles down to suppliers and retailers, as well,” said Challenger. What other industries may see a boom in hiring? What factors contribute to a positive hiring trend? How might the jobless seek out industries ripe for growth?