The Free Press, Mankato, MN

State, national news

October 22, 2013

Will US hiring accelerate if economy doesn't?

Employers remain slow to hire

WASHINGTON (AP) — The uncertainty and weakness that hung over the U.S. job market in September before the government shut down aren't going away.

Employers will likely remain slow to hire as long as the economy struggles to accelerate, consumers limit their spending and Congress keeps putting off a resolution to a budget fight that will resurface early next year.

Just a few months ago, many economists predicted that hiring would pick up by year's end as the effects of tax increases and government spending cuts that kicked in this year faded.

No longer. The September jobs report made clear that hiring isn't strengthening. It's slowing.

Employers last month added 148,000 jobs, a steep drop from the 193,000 gained in August. From January through March, job growth averaged 207,000 jobs a month. For April through June, the average was 182,000. For July through September, it was just 143,000.

"We had assumed that the headwinds would dissipate, but in fact they didn't," says Doug Handler, an economist at IHS Global Insight.

What's more, the 16-day partial shutdown of the government, which began Oct. 1, will likely further depress hiring for October. That's because government contractors and other companies affected by the shutdown imposed temporary layoffs.

And the budget battles that led to the shutdown are likely to flare up later this year and in early 2014. Last week, Congress agreed to keep the government running only until Jan. 15 while President Barack Obama and Congress seek a broader budget agreement.

In the meantime, uncertainty about another budget impasse — and potentially another government shutdown — may cause some businesses to hold off on hiring or expanding.

"Companies are not feeling confident enough to expand, to hire, to invest," said Yelena Shulyatyeva, an economist at BNP Paribas. "They're just sitting on the sidelines, being cautious, and watching all these headlines from Washington."

Text Only | Photo Reprints
State, national news
  • 9 TC Rainbow stores to close Supermarkets to lose in Cottage Grove, Shoreview, Inver Grove Heights, Apple Valley, Blaine, Bloomington, Coon Rapids, Maple Grove and Savage

    July 21, 2014

  • Accelerants fuel fire; 2 rescued ST. PAUL — Two brothers were rescued from the upper floor of a St. Paul duplex in a fire that was fueled by cylinders of gas, oxygen and other accelerants. Authorities say the two were taken to Regions Hospital where one man is in critical condition

    July 21, 2014

  • Monticello doctor dies in cycle crash Patients among those mourning Dr. Eric Lefebvre's death

    July 21, 2014

  • Precautions urged for excessive heat, humidity MINNEAPOLIS (AP) — Health officials are urging Minnesotans to take precautions in dealing with high temperatures and humidity. The National Weather Service says the humidity will make temperatures feel like 100 to 110 degrees Monday across much of M

    July 21, 2014

  • NASA names building for moonwalker Neil Armstrong NASA honored one of its most famous astronauts Monday by renaming a historic building at the Kennedy Space Center in Florida. It now bears the name of Neil Armstrong, the first man to walk on the moon when the Apollo 11 mission landed there 45 years

    July 21, 2014

  • Minnesota man loses relatives in airliner crash Drew Ryder of Willmar says victims included his brother, sister-in-law

    July 21, 2014

  • Shark sightings off Cape Cod a boon for tourism CHATHAM, Mass. (AP) — In "Jaws," the fictional mayor tried to protect the summer tourism season by keeping a lid on reports of the man-eater lurking offshore. As sightings of great white sharks mount off Cape Cod in real life, however, businesses in

    July 21, 2014

  • Dutch anger swells at treatment of Ukraine bodies THE HAGUE, Netherlands (AP) — It is no longer only grief and mourning sweeping across the Netherlands in the aftermath of the downing of Malaysia Airlines Flight 17. It is now anger. The Dutch have widely condemned the way the bodies of loved ones h

    July 21, 2014

  • Diplomacy intensifies amid mounting Gaza toll GAZA CITY, Gaza Strip (AP) — The U.N. chief and the U.S. secretary of state headed to Cairo on Monday for the highest-level attempt yet to end two weeks of Israel-Hamas fighting that has killed at least 510 Palestinians and 20 Israelis and driven ten

    July 21, 2014

  • Actor James Garner dead at age 86 Veteran film and television actor James Garner died of natural causes Saturday at the age of 86.

    July 20, 2014