More CEOs of big US companies expect to add jobs than cut jobs for first time since early 2008

More CEOs of big US companies expect to add jobs than cut jobs for first time since early 2008
By TALI ARBEL
Copyright 2010 Associated Press
10:16 a.m. CDT, April 7, 2010
http://www.chicagotribune.com/business/sns-ap-us-business-outlook-ceos,0,207476.story


NEW YORK (AP) — For the first time in two years, more CEOs expect to be adding jobs than cutting jobs.

A survey released Wednesday by the Business Roundtable, an association of CEOs of big U.S. companies, says 29 percent of chief executives expect to increase corporate payrolls over the next six months, while 21 percent predict that their work forces will shrink. Half see no change in jobs.

That's the first time since the first quarter of 2008 that more CEOs have expected to increase jobs rather than shrink them. In the fourth quarter of 2009, only 19 percent expected their payrolls would grow, while 31 percent predicted a declining work force and half expected jobs to hold steady.

The labor market has just recently begun to improve after losing more than 8 million jobs during the recession. Last week, the government reported that employers added 162,000 jobs in March — the biggest gain in three years.

While the pace of layoffs has slowed from the frenzy of job-cutting in early 2009, some companies continue to cut workers. An oil-field services company, Denver-based EnerCrest, said this month it had closed five locations in four states, losing 225 employees. Business software company CA Inc. said Tuesday that it's cutting 1,000 jobs as part of a plan to reduce costs.

Company leaders in the survey are also optimistic about business prospects ahead of the reporting season for second-quarter earnings. About 73 percent say they expect sales to grow over the next half year, 23 percent forecast no change, and only 5 percent predict shrinking sales.

That's up from the 68 percent in the fourth quarter who had expected sales to grow; 17 percent had expected declining sales then, and 15 percent forecast no change.

"As the economy recovers and demand returns, we are seeing across-the-board increases in sales, resulting in increased capital expenditures, less job reduction and some employment stabilization," said Ivan G. Seidenberg, chairman of the group and CEO of Verizon Communications Inc.

Nearly half — 47 percent — of the CEOs surveyed said they will increase capital spending in the next six months, up from 40 percent in the fourth quarter.

The CEOs predict the economy will grow 2.3 percent for 2010 after shrinking 2.4 percent in 2009. In the fourth quarter of last year, the economy grew at a 5.6 percent annual pace.

The survey, taken from March 15-30, surveyed 105 CEOs.