U.S. Job Growth: Hiring Surge Predicted for 2011 Many Wall Street pundits have come out with surprisingly bullish takes on the U.S. economy for the year ahead, but high unemployment continues to ravage Main Street. Still, with corporate profits booming and the stock market rallying, signs are piling up that employment may finally be poised for a comeback, too.

Internet job listings surged to 4.7 million as of Dec. 1, compared to 2.7 million from the same period a year ago, according to a recent report in The Wall Street Journal. Many of the new jobs are in the retailing, accounting, consulting health care, telecommunications and defense-related industries, according to data from job search website Indeed.com.

Farming, manufacturing and construction jobs are underrepresented in the survey, which may place a heavier emphasis on computer-based jobs, an expert told The Journal. But signs of job growth are broad based.

The employment index in the Texas Manufacturing Outlook survey, which was released Monday by the Dallas Federal Reserve, surged to 15 in December from 6 in November, its highest level since early 2007. "Labor market indicators improved notably this month," according to the survey. While 24% of firms reported hiring new workers, only 9% reported layoffs. Hours worked also increased, and an index of wages and benefits doubled from 5 to 10.

Putting Massive Profits to Good Use?

Revenue at staffing companies like Robert Half (RHI), SFN Group (SFN) and Kforce (KFRC) surged during the third quarter, Bloomberg notes. Stocks in the Standard & Poor's Supercomposite Human Resources and Employment Service Index have racked up gains of almost 50% since the summer, far ahead of the roughly 20% delivered by the overall index.

Massive corporate profits could finally be fueling a surge in hiring. At $1.64 trillion in the third quarter, U.S. corporate profits are just $20 billion shy of the record $1.66 trillion posted during the third quarter of 2006, investment bank Deutsche Bank (DB) estimated based on tax receipts.

Investors should note the rallying stock market: A growing crowd on Wall Street is predicting further stock-price rises in the year ahead, which could provide further fuel for job growth.

Along with the direct "wealth effect" of rising portfolios, the stock market may serve as a gauge of overall confidence for businesses. Strong job growth followed a sustained stock market rally last spring, for example. But job-creation stalled as the European debt crisis hit markets over the summer. Likewise, job growth came in well below estimates in November after more market jitters that month.

If the market steadies in the year ahead as expected, Corporate America may finally be ready to hire in large numbers again.

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I plan oh hiring at least 3 temp employees this year. Not much but it is a start.

January 03 2011 at 11:07 AM Report abuse rate up rate down Reply

pravda always boasted of record wheat production in the ussr.only problem ... no bread in the stores.it's all bs

January 03 2011 at 10:19 AM Report abuse +4 rate up rate down Reply

It's a new year, time to stop bytching about EVERYTHING! I really think that some of you just wake up and can not be happy unless you are complaining. Shyt happens people. This isn't the first time that this country has been in trouble and it won't be the last. Be positive, things will get better!

January 03 2011 at 5:16 AM Report abuse -2 rate up rate down Reply

You people out there that constantly bad mouth and bash the unemployed must be one of the government employees of some form that represents 50% of the workforce on average in each major metro area. Too many blue collar middle class that have gave all these years are shut down and bashed. Especially the over 50 folks. Fortunate parrots with the IQ of a slug should curb their bitter and ignorant selves.

January 03 2011 at 3:02 AM Report abuse +1 rate up rate down Reply

yes job growth. all the $7.00 an hour you want. obama progressive marxist/communist centralized solution has worked. obama and his communist party is a joke.

January 02 2011 at 8:29 AM Report abuse +4 rate up rate down Reply

How can there be job growth with attempts by companies to hire ILLEGAL workers at a fraction of what is paid to American worker, and no benefits. You have the HB1 Bill, which allow companies to hire foreign worker for three years with a six year maximum. Prior to the signing of the Stimulus Bill, wording that restrict employers from hiring Illegal immigrants for any Federal funded jobs was removed. Many uninformed Americans are in lala land to think things will get better. And now the price of oil is projected to reach $5.00/gallon it will affect everything you buy. The Greedy is getting more greedy. Some companies have moved their administration offices off shore to avoid paying some taxes. So who are these companies that is going to start hiring in 2011 that will lower the unemployed significantly.

January 01 2011 at 2:22 AM Report abuse +3 rate up rate down Reply

There's only 1 reason these so called experts and the DC terrorists we call politicians say growth is happening.The economy and job loss hasn't affected them.I really don't think they would be shoveling this crap if they were out of work,looking at losing all of what they've worked for and can't find work because the applicant pool is about 20-1for job openings.Unemployment pays nothing compared to what most earned before job loss.My income while on unemployment didn't equal a third of the pay from the job I lost.Even working 2 part-time jobs now,I had to file for food stamps and still have a negative earning each month.All this after working at the same job for 22 years.The people we've entrusted our country and future with must have been educated in clown college.Greed caused these problems and greed is keeping them from being fixed.

January 01 2011 at 2:14 AM Report abuse +4 rate up rate down Reply

Things improving? Baloney. Our current economic woes are because not enough of the enormous wealth we generate each year is recirculated in our own capitalistic economy. Our balance of trade deficits are measured in trillions- wealth drained from our economy. The 15 million or so out of work are not generating over a half trillion dollars of wealth a year. The largest culprit is our Federal Government which provides many essential services (wealth) to us. However the waste, lost wealth, is appaling. We hear that Fed employees are paid about double that of the private sector. The efficiency is also far less than the private sector. Adding untold billions to the essential environmental concerns while we chase out to six or eight decimal places is all wasted wealth. We have exported untold trillions in the balance of trade deficits but prefer to blame corportations for sending jobs overseas. The 15 million out of work are not producing over a half trillion a year in wealth to recirculate in our own economy.
The 10 to 15 million illegal aliens drain hundreds of billions a year in social sevices and exported cash.
So explain how things are going to get better when NONE of these things are being addressed. Borrowing stimulus money is trying to borrow oneself rich. Doesn't work.

The bottom line is that althoug we still generate trillions more than any other system we will have to get used to a lower standard of living. Still better than the Eupopean social welfare system but fast approaching them.

Meanwhile both political parties continue to jockey for power and public service now ranks below dog catcher, lawyer and used car salesman.

What we needed was a leader. We were offered none and even picked the one with the least (none) experience. Fabulous speeches but not the first dime of improvement.



January 01 2011 at 1:49 AM Report abuse +1 rate up rate down Reply
1 reply to jensen308's comment

The only way for the presently unemployed to become employed is to move to the areas with lower unemployment. It is NOT brain surgery. Beg, borrow or steal to get to the areas least affected by the recession and you will have a chance.
IT IS THAT SIMPLE! Quit whining and get moving or find someone to help you.

January 01 2011 at 4:17 AM Report abuse -1 rate up rate down Reply

GREAT! but what kind of JOBS? McDonald's, WalMart, and Jiffy Lube isn't going to do USA much good. We need decent paying jobs, not poverty level jobs

January 01 2011 at 12:25 AM Report abuse +3 rate up rate down Reply
2 replies to threedawgknights's comment

ANY JOB IS BETTER THAN NO JOB! big whiner! work your way up like every motivated person in america did it.....geez!

January 01 2011 at 4:19 AM Report abuse rate up rate down Reply

Excuse me mlrinc10, but after having worked my way up for the last 34 years, and now that the democrats and lame politicians have sold us out and sent my job elsewhere or gave it to an illegal, you equate us to "Big Whiners". Threedawgknights is right on in the response... after 34 years, this is what is left and the media snowballs us again and again...

January 03 2011 at 2:49 AM Report abuse +2 rate up rate down Reply

How stupid. Pelosi, Reid and Obama just told us that unemployment checks stimulate the economy. Why would anyone want more employment? We should have more layoffs so that more people can collect 2 years of checks to buy all those consumer goods. Right?

December 31 2010 at 11:40 PM Report abuse rate up rate down Reply