Companies rely on existing workers and temporary employees instead of hiring

Companies are relying on existing workers and temporary employees instead of hiring, evidence the European crisis is hurting U.S. confidence more than demand. The average workweek climbed by six minutes to 34.5 hours in June, the first gain since February, Labor Department figures showed today in Washington. Temporary staffing rose by 25,200, the third consecutive increase.

“Firms are still seeing an increase in demand, and there is a need for more labor,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. “But there are so many risks out there that businesses don’t want to commit to hiring full-time employees.”

Payrolls advanced by 80,000 workers in June, fewer than the median estimate of 100,000 in a Bloomberg News survey of economists, after a 77,000 rise the prior month, today’s report showed. The lack of hiring fueled concern the world’s largest economy was slowing, pushing stocks down, with the Standard & Poor’s 500 Index heading for its biggest weekly loss in a month. Read more >>

To save money, a 5th of Americans won't celebrate Independence Day

A fifth of Americans 21% said they don't plan to celebrate Independence Day and those who are plan to spend less than last year, according to a survey released Sunday of a little more than 1,000 people by Visa.

That's up from the 18% who said they weren't joining in July 4 festivities last year. Those who plan to celebrate are spending an average of $191 on everything from travel to food to fireworks, down from $216 last year, according to a survey released Sunday by Visa.

On the other hand, nearly half of those celebrating will watch or light fireworks, according to a monthly consumer survey by the National Retail Federation. And close to 68% of consumers said they'll host or attend a barbecue, the most in the nine-year history of the NRF survey. Read more >>

Consumer Spending Stalls, Morale at 6-Month Low

Reuters
Consumer spending growth ground to a halt in May as auto purchases flagged, while confidence ebbed to a six-month low in June, the latest signs of trouble for the economy. Although manufacturing activity in the Midwest picked up this month, it offered little cheer for an economic recovery that has been hit by turbulence from the debt crisis in Europe and a lack of clarity on the course of fiscal policy at home.

"We are at a stall speed expansion here," said Tim Quinlan, an economist at Wells Fargo in Charlotte, North Carolina. "We have a consumer who is sort of losing steam."