This blog has recently discussed a number of positive indicators concerning the trajectory of the U.S. economic recovery, including an uptick in manufacturing activity and rising consumer confidence.
Today, we’ll take a look at how the positive trend in public confidence regarding the economy may be affected by the most recent ADP national employment report, which was released on October 3.
The report showed a significant increase in U.S. nonfarm private sector employment, with a total of 162,000 new positions created.
MarketWatch reported that stocks gained ground in the wake of the release of ADP’s job creation numbers, which exceeded many economists’ expectations. The news source cited an increase in several major indexes, including the S&P 500, Dow Jones Industrial Average and Nasdaq Composite.
The Department of Labor’s Bureau of Labor Statistics (BLS) is scheduled to release its monthly employment situation report on Friday, October 5, which may have an impact on investor confidence. Particularly over the course of the past few months, BLS data has often varied considerably from the estimates produced by ADP.
According to MarketWatch, one of the prime reasons for the wide variation is that ADP’s research only looks at private sector employment, while the BLS also factors in any change in government employment, which has been shrinking significantly due to budget cuts.
The bottom line for businesses
Ultimately, the question facing many corporate leaders is whether or not to prepare for expansion. With the trajectory of the economic recovery remaining somewhat tenuous, it is unclear to companies how hiring decisions should be handled. There is a compelling reason to balance the desire to keep commitments minimal with the need to be prepared for an uptick in economic activity.
One thing remains clear. When businesses are looking to fill critical positions such as CFO jobs, quality is of the utmost importance. Professional recruiters can help any company conduct a fast, effective financial professional search.