Job market slowly gaining momentum

By Leigh Strope
Associated Press

WASHINGTON — Ever so slowly, help-wanted signs are starting to replace the layoff notices.

But the end of the recession and payroll increases do not mean job seekers are in the driver's seat. Economists say companies will remain skittish about hiring back workers until a full economic recovery has appeared, possibly at year's end or next year.

That means the unemployment rate still could rise to 6 percent or more before leveling off, some analysts said.

And job seekers may want to avoid such fields as telecommunications, general manufacturing and high tech, which may take longer to recover, economists said.

As the economy strengthens, economists said they think jobs will be added in retail, services and government, areas that already showed growth in February.

Jobs in healthcare have survived the recession, and demand is expected to get stronger as the population ages. About 126,000 nursing vacancies already exist at hospitals, a figure the industry expects to balloon to 400,000 by 2020.

Demand also will grow at pharmaceutical companies, biotechnology companies, hospitals, doctors' offices and clinics.

Education is another field that will be adding jobs at all levels. Part of the growth is because of the poor economy.

"A weak economy has induced people to stay in school or go back to school," said Mark Zandi, chief economist at Economy.com.

Consumers continued to spend throughout the recession, and many discount retailers such as Wal-Mart and Target have benefited, Zandi said.

Amusement and recreation companies, hotels and airlines also are starting to rebound. Southwest, United and Northwest airlines have announced plans to recall furloughed workers and possibly add new employees, although at more measured rates than in the past.