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Economists: Economy, jobs picture are improving

April 26, 2010

Business conditions improved and the jobs outlook is getting better over the next six months, according to the National Association for Business Economics' April industry survey released today.

The survey included responses from 68 NABE members, and was taken between March 25 and April 10. NABE is a professional association for business economists.

"NABE's April 2010 industry survey confirms that the U.S. recovery from the Great Recession continues, with business conditions improving," William Strauss, senior economist and economic adviser at the Federal Reserve Bank of Chicago and NABE board member, said in a press release. "After more than two years of job losses, job creation increased in the first quarter of 2010, suggesting a better outlook for hiring over the next six months."

The percentage of firms increasing payrolls rose to 22% in the April survey from 13% in the previous survey in January. The percentage of companies cutting jobs fell to 13% in the April survey from 28% in January.

However, 73% of respondents said the federal fiscal stimulus in February had had no impact on employment to date. In addition, 68% said recently enacted jobs legislation, won't have an impact on payrolls. One such piece of legislation was the HIRE Act, which provides an employer tax break for hiring workers who had been unemployed for at least 60 days.

The survey respondents predicted growth in real gross domestic product of 3.1% in 2010 compared to their previous forecast of 3.2%.