Hiring Keeps Outpacing the Economy
Comment on U.S. Bureau of Labor Statistics Employment Situation Report
Kathy Bostjancic, Director of Macroeconomic Analysis, The Conference Board
NEW YORK, Feb. 1, 2013 /PRNewswire/ -- With a gain of 157,000 jobs in January, the employment situation continues to improve despite slow economic growth. The good news is that January's employment gains, coupled with large revisions to the prior months, may translate into more consumer spending power, which helps offset some of the negative drag on after-tax income from the expiration of the temporary payroll tax cut. The bad news is that unemployment remains stubbornly high. Moreover, this job gain probably reflects still low productivity growth in the first quarter of 2013. Combined with some modest rise in labor costs, it means business profitability is narrowing somewhat. Still, business has long wondered when demand would improve enough to warrant adding to staffing levels. The January job gain may represent that tipping point.
About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org
SOURCE The Conference Board
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