Monday, March 25, 2013

The Job Market Looks Better

From Bloomberg:

Businesses are adding employees to meet stronger demand and supplement workforces that have become increasingly stretched during the four-year expansion. Smaller companies are finding it easier to borrow as banks loosen terms on loans. 

Circle Foods LLC, a San Diego-based maker of TortillaLand uncooked fresh tortillas, has hired 165 people in the past six months and created the new position of human-resources training manager. 

“The labor market has shown signs of improvement,” Federal Reserve Chairman Ben S. Bernanke said in a March 20 press conference. He mentioned indicators such as gains in payrolls, more hours worked and a decline in claims for unemployment insurance. The jobless rate, which “remains elevated” at 7.7 percent, has nonetheless “continued to tick down.” 

The strengthening outlook for employment and growth is good news for the stock market. Sinai sees the Standard & Poor’s 500 Index rising to 1,600 later this year from 1,556.89 (SPX) on March 22.