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Survey says hiring in U.S. to reach 12 year high

by Jorge Hernandez on January 24, 2011

A survey released Monday by the National Association for Business Economics projects that employment will reach a 12-year high over the next six months as U.S. employers enjoy another wave of economic growth.

The amount of companies surveyed that said they intend to hire more people and expect even better sales in 2011 saw a marked increase from last year, CNN reports.

Forty-two percent of the 84 companies surveyed said they would take on new hires in the next six months, up 13 percent from last year. The majority, or 51 percent, said there would be no change in hiring, while only 7 percent said they would hire less, compared to 23 percent last year.

Meanwhile, 62 percent of those surveyed expected a GDP growth or 2 or 3 percent, while 20 percent forecasted a growth of 3 or 4 percent. This amounts to 82 percent of respondents expecting a sharp increase, up from 54 percent last year, the news source reports.

"The number of firms expressing positive hiring plans is at a level not seen in over a decade – a sign of improving labor-market dynamics…it looks like the opening melody of a true recovery in the labor market," said survey chairman Shawn DuBravac of the Consumer Electronics Association.

According to the Wall Street Journal, the survey results this year are comparable to the record set in 1998 when the gap between those expecting to hire more versus less was at an all-time high.

The majority of respondents also said that they expect to see a positive impact on sales due to the recently approved tax-cut package, the news source reports.

Bloomberg reports that the survey findings reinforce evidence of a strengthening economy, which has seen less claims for unemployment benefits and a decline in the national unemployment rate.

The survey was taken between December 17 and January 5, the Wall Street Journal reports.

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