Employment in the U.S. expected to improve this year

By Staff Reporter

May 21, 2012 10:54 AM EDT

Employment is expected to progress more in 2012 than economists had assessed, according to a survey by the National Association for Business Economics.

Payrolls are expected to increase an average of 188,000 a month in 2012, a small rise from a February projection of 170,000. Unemployment will also remain around 8 percent in the fourth quarter, a small change from last month's 8.1 percent.

The U.S. economy will also increase by 2.3 percent in 2012 and is expected to expand by 2.7 percent in 2013. Inflation will remain at manageable levels, while the jobless rate will limit any improvements in consumer spending, revealed the survey.

Shawn DuBravac, chief economist at the Consumer Electronics Association and chairman of the survey, anticipates "moderate growth in the near-term with improvement coming in the post-election year." He added that "Expectations for housing, vehicle sales, employment, and industrial production all improved."

The survey, which took place from April 19 to May 2, did not include the April jobs report that was released on May 4.

In 2013, the job market may improve further, revealed the survey. Payrolls are expected to increase an average of 200,000 a month in 2013. In addition, the unemployment rate may fall to 7.5 percent from October to December of next year.

Economists have also increased their auto sales estimations this year to 14.5 million from 14 million in the February survey, making 2012 the best year since 2007. Furthermore, demand is predicted to climb in 2013 to 14.8 million.

The housing market may also improve according to economists in the latest survey. It is expected jump to 720,000 this year when compared to a February prediction of 700,000. They are expected to rise to 850,000 in 2013, which would calculate as best year for construction since 2008.

Inflation will also be limited even if the economy grows. Rates associated with consumer spending will increase by 2 percent in 2012 and 2013, the survey also revealed.