With the smallest job declines in a year, a recovery appears in sight. But businesses are proceeding with caution, uncertain of how strong a rebound will be.
Early signs of a stabilizing labor market added to the belief that the economy could grow in the second half of the year. Much of that growth hinges on whether businesses begin restocking shelves and ramping up their work force — a tricky decision for companies still dealing with wary consumers.
An increase in the average workweek is a good start, though. In July, it rose 0.1 hours for private workers and even more, 0.3 hours, for manufacturing employees. “That’s typically a leading sign that hiring is going to start to recover several months in the future,” said Steven Wood, Insight Economics LLC’s chief economist.
Some companies’ plans reflect the optimism. JTEKT Automotive Manufacturers in Vonore, Tenn., rehired 65 employees after furloughing 135 workers earlier this year. An uptick in new orders spurred the hiring, said Craig Woodford, president of the Vonore location. But he’s concerned it might not last.
