US Employment’s Economic Outlook:
The economy in 2012 has been difficult for many – and that difficulty has been reflected in hiring trends. While software engineers have continued to be in high demand, the trend towards lower unemployment and increased hiring will certainly help the tech industry too.
The recession has hurt, but companies have found ways to work through it. According to Moody’s Analytics, “US companies are in especially good shape. They significantly lowered their costs structures during the recession, and have kept unit labor costs unchanged since the downturn. Profit margins thus expanded and lower interest rates have allowed firms to lighten their debts and generate cash. Banks are also well positioned for growth, since they raised hundreds of billions in new capital and adhered to tighter underwriting standards, improving credit conditions. While household balance sheets have not uniformly improved, the debt service burden – the proportion of after-tax income needed to stay current on outstanding debt – will soon be at record lows.“
The US Department of Labor also predicts an increase in job creation and lower unemployment by the end of next year: “Resolution of the political debate over taxes and spending should lead to a brighter picture in 2013. As GDP picks up in the second half, net job creation will push toward the 2 million mark for the year – a modest but significant increase from the 1.8 million expected for 2012. Moreover, the unemployment rate, still uncomfortably high at 7.7% in November, will head lower, to the neighborhood of 7.5% by December 31, 2013.”
Tech Job Growth:
National Association of Colleges and Employers’ Job Outlook 2013 survey.
Next year, especially the second half, looks to be a year of growth and opportunity. We look forward to connecting even more people with the right jobs in 2013.