As manufacturing firms report growth, their hiring could jump start labor marketSigns of a resurgent U.S. economy are mounting as GDP grows and companies report positive earnings; though it was hit hard by the recession, the manufacturing sector has charged back in recent months, expanding and helping drive growth.

Many U.S. manufacturing companies posted fourth quarter results recently that easily beat the expectations of economists. Aside from the rise in profits they logged, many manufacturing companies reported that they had improved margins and expected the expansion to continue as industrial demand is categorically strong - especially in emerging markets.

Companies like Caterpillar, Tyco and Eaton all had strong sales and earnings in Q4, signaling that businesses are starting to invest more as they grow increasingly confident that the U.S. economic recovery is gaining strength. Moreover, though Caterpillar was forced to cut some 30,000 full-time and contract employees during the recession, the company said it rehired about 8,200 workers in 2010.

Ultimately, the growth in the industry could help fuel a recovery in the labor market, according to Oliver Pursche, the president of Gary Oldberg Financial Services. Pursche told Reuters that as more manufacturing companies hire additional workers, confidence builds in the markets: "The more they talk about hiring, the more comfortable we're going to be with that company. If you're hiring people, your business is growing."  
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