Jobs still elusive despite economic boom

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Jobs still elusive despite economic boom

NEW YORK, US - Despite the upbeat performance of the manufacturing sector which has seen a 20-year high at the start of the new year, many manufacturers in the US remain cautious about taking on new employees, dampeni8ng hopes of a turnaround in production jobs.

The Institute for Supply Management's manufacturing index rose to 63.6 in January to the highest point since late 1983 from a revised reading of 63.4 the prior month.

Yet despite this growth, a period of sustained hiring has proven the missing link in the recovery, with consumer spending set to falter if such a trend is not forthcoming.

The national payrolls report has yet to show an improvement in factory hiring after three years of decline and in December, 26,000 manufacturing jobs were lost, with analysts likely to be closely studying the January payrolls report due February 6th for any improvement.

Lehman Bros. economist Drew Matus warned: “The economy is going to accelerate in some areas and decelerate in others and the labor market is going to be the one that keeps getting squeezed."

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