Hiring reluctance continues

WASHINGTON - Companies are still hesitating to ramp up hiring, even as more evidence emerges that the economy is slowly improving.

Employers posted fewer job vacancies in September than the previous month, the second month of declines, according to a report Tuesday from the Labor Department.

And a survey of small business owners showed they are more optimistic, but still reluctant to add many new workers.

Meanwhile, the Commerce Department reported Tuesday that wholesale inventories rose for the ninth straight month in September. Wholesalers and distributors are likely to build their stockpiles if they anticipate higher future sales.

Inventory restocking has been a crucial source of economic growth since the recession ended in June 2009. Increased orders to fill empty store and warehouse shelves has meant higher production at U.S. factories.

Manufacturing has been one of the standout performers so far as U.S. factories have benefited from businesses restocking and from stronger export sales.

Many businesses had undertaken a massive liquidation of inventories in early 2009 as they struggled to cope with the recession and plunging demand for their products.

But the switch from slashing inventories to rebuilding stockpiles was a big factor supporting economic growth in the final quarter of last year and the first part of this year.

The Labor Department said Tuesday that employers advertised 2.9 million jobs at the end of September. That's a drop of 163,000, or 5.3 percent, from the previous month.

The figures come after the department issued a modestly positive employment report on Friday. That report found that employers added a net total of 151,000 jobs in October.

But yesterday's report, known as the Job Openings and Labor Turnover survey, or JOLTS, signals that employers still aren't willing to hire in large numbers.

Openings have increased by 25 percent since July 2009, when they fell to their lowest point since records began in 2001. Still, they are far below the 4.4 million openings reported in December 2007, when the recession began.