Economy, Hiring | featured news

Economists see a vicious cycle: The economy won't improve until businesses hire, but many won't hire without consumer demand, which is weak because of the slack job market and concerns about the future. The roofing supply yard in Long Beach is rumbling with activity these days, thanks in part to a wet winter that has property owners eager to make repairs before fall.

The U.S. labor market could stay sluggish for a while, with small-business executives reluctant to hire amid the murky economic outlook, a Chamber of Commerce survey showed.

Hiring slowed to a near-standstill last month, raising doubts that the economy will rebound in the second half of the year after a spring slump.

Americans are finally getting some relief from high gas and food prices. Wholesale food prices fell last month by the most in nearly a year, and gas prices keep dropping after peaking in May. A separate survey suggests CEOs are feeling more optimistic and will hire more in the second half of this year.

Signs of weakness in the U.S. economic recovery mounted as reports on Wednesday showed a sharp slowdown in the vast services sector and less hiring by private companies in April.

Fast-food chain McDonald’s said Monday that it plans to hire as many as 50,000 additional employees in the United States later this month.

Layoffs are down, and at pre-recession levels, but hiring remains slow, Labor Department data showed.

Renewed fears of a so-called “double-dip” recession are weighing on investors, spooking consumers and slowing businesses from hiring.

Economists say the U.S. recovery continued during the second quarter of this year with more businesses hiring workers and fewer cutting jobs, but the pace of growth has slowed, a new survey shows.

U.S. employers expect to hire more new workers in 2010 than they did in 2009, a sign the U.S. recession may be easing its grip, research showed on Tuesday.