The US economy improved during 2010 with encouraging signs of recovery particularly evident in the first half of the year. However, the unemployment rate across the US has remained at around 9.5% for over 16 months; the longest period of high unemployment since recordkeeping began. Many companies in the US attempted tomaintain productivity levels with minimal resources in 2010, and only approved hiring for business-critical roles.
However, the US government announced additional measures to support the economy towards the end of 2010, including purchasing treasuries and keeping interest rates low. This action has resulted in cautious optimism for the employment market in 2011.
We expect to see a rise in hiring activity during the second half of 2011 as the economic recovery gains traction. Global growth, technological advancement, newgovernment initiatives and increasing consumer demand will lead to higher employment and economic prosperity. While inflation remains low and the hiring bias in favor of employers, we do not see any significant gains in overall compensation levels in 2011.