Is the Recession Finally Starting to Turn Around?

Companies starting to rehire laid-off workers

There are a lot of different factors that could be signs of the recession easing up. Though in some sectors we’re still seeing evidence that the recession continues to get worse, a few rays of hope are starting to shine through.
CNN Money reports that companies are starting to recall previously laid off workers, giving them back their old jobs. This is a good sign that economic conditions are improving. Paired with the stable unemployment rate, I’d say there’s definitely potential for some prosperous days ahead.

Other economic indicators

JP Morgan Chase has lost a lot of money in its credit card division, and this company sees that as a sign that the recession is not getting any better, especially because it is continuing to lose money. However, I think it’s a sign that people are getting smarter about credit and discovering alternatives like installment loans instead of using their credit cards like there’s no tomorrow.
I think the fact that people are using credit cards less even though there are strong indicators that economic conditions are improving is another piece of evidence to support the idea that people are simply changing the way they spend money and use credit. Here are some statistics from CNN Money that show we’re headed for better economic times:

• About 38% of employers have indicated they anticipate some type of recall of cut workers, according to a recent report from the Labor Department.
• General Motors, Ford Motor, Dell, AK Steel and truck maker Oshkosh, have already reached out to previously laid-off employees to meet rising demand.
• In a survey, 18% of laid-off workers who landed new positions were rehired by the employer that let them go, up from 13% in 2005, according to Right Management’s outplacement services, a division of Manpower.

Not out of the woods yet

Though some companies are able and willing to rehire their laid-off workers now, the economy is still pretty unstable, and we will definitely still see more layoffs before the recession ends. But it’s important to remember that laid-off workers really can and do get hired back by their former employers.

Getting laid off is tough. It makes people scared, depressed and usually very angry. However, remember that if you get laid off, the way you handle it could come back to haunt you later. It’s easy to have fantasies about telling off your employer and saying all of those horrible things you’ve imagined saying to your coworkers, but finding a job is not easy, and if you have the chance to get your old job back while you’re still looking for another, wouldn’t you want to take it. So always leave companies on a good note. Don’t count on being rehired, but make sure you consider the possibility that it could happen and behave accordingly.

More from CNN Money:

There are many upsides to rehiring former employees, according to management professor Peter Cappelli of the University of Pennsylvania’s Wharton School of Business. The positives include savings on recruiting and training costs, maintaining associations between customers and employees, and the fact that the rehired employee doesn’t need an introduction to his or her colleagues.
But redundant firing and hiring can also be costly for the company, particularly in the form of severance payments, and can even be disruptive to workforce performance.