Hiring is slowing — slowly. It might be just what the economy needs.
That is, the slow pace of job growth is likely to produce more sustainable economic growth in the long run. After all, if employers hire too quickly, they could become over-exposed to economic downturns and see their profits and productivity suffer in the future.
On the other hand, hiring too slowly could result in a “jobless recovery,” with depressed wages and hindering economic growth. The key is to get the right balance that allows the economy to grow sustainably. This means hiring that is robust enough to continue the recovery but not so rapid that it leads to an unsustainable economic environment.
The good news is that many firms are beginning to show signs of stability, with job postings increasing and more employers expressing optimism for the economy. This is an encouraging sign and hopefully the recent slowing of the pace of job growth is a sign of businesses steadying themselves for a more sustainable future.