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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsReasons companies are not hiring
From the just released Philly Fed report...
Firms were asked to rank the three most important factors restraining hiring. The most frequently cited reason was the expectation of slow sales growth. Among the top three factors restraining hiring, the need to keep operating costs low (50 percent) ranked nearly as high as expected low sales growth (51 percent). Uncertainty about health-care costs, the inability to find skilled workers, and uncertainty about regulations and policies were also prominently listed.
http://www.businessweek.com/news/2012-05-17/u-dot-s-dot-may-philadelphia-business-outlook-report-text
chart with responses...
http://www.businessinsider.com/details-from-the-philly-fed-manufacturing-report-2012-5#and-a-bonus-the-op-reasons-that-companies-arent-hiring-8
snappyturtle
(14,656 posts)sendero
(28,552 posts)... private Karnac to know why companies are not hiring..
There is no DEMAND. DEMAND is flat. No matter how much "investment capital" you have available, no matter ANYTHING ELSE if DEMAND is not growing there is no reason to grow your business.
This is why I laugh inside when Romney and any other Republican claims they can create jobs. Their policies will only stifle demand and make things worse.
coalition_unwilling
(14,180 posts)that the recovery is faltering.
I didn't know I was 'sly' and 'opportunistic' until I read that thread.
http://www.democraticunderground.com/1002696192
SoCalDem
(103,856 posts)SoCalDem Donating Member (1000+ posts) Thu Jan-08-09 02:43 PM
Original message
Demand has to happen FIRST...
No matter how much "stimulus" happens, companies hire based on demand for the product or service they produce.
Employers who receive financial help from the government to stay afloat, will NOT hire new people with that money, if there is no reason to hire them.. They will use that bail-out money to keep paying themselves, shareholders & upkeep on their facility, but they will NOT just hire new people to create "stuff" that no one wants to buy..
Right now there is a GLUT of "stuff" to be bought, but there is also a serious amount of debt for "stuff" people bought a while ago (for some...years' worth of stuff), and at the same time, there is a shortage of money in those same households. Add a whopping dose of FEAR of spending, and we are where we are..
If you owned a company that made 5000 whatevers a year, and you only had orders for 1000, would you hire more people to make more whatevers?
All the fancy maneuvers will not help until the issue of consumer debt is addressed.. It remains right where it's been, lurking in the background.
If a family has $10K of credit card debt and a car loan or two, a $1000.00 check is a drop in the bucket, and probably would not even make a dent in their financial nightmare.
Until main street "gets solvent", and gets off the credit merry-go-round, there will be little demand for "stuff".
BadgerKid
(4,552 posts)RC
(25,592 posts)With people not buying, business cannot afford to hire, or to pay a Living Wage. To break the cycle, Main Street needs to be bailed out instead of rewarding the big financial gamblers.
(Insert definition of insanity here) The fix is to do something other than what got us, U.S. in this economic mess in the first place. We are still trying to dig our way out with the same tools and plans that that were used to dig the hole in the first place. What is wrong with this picture?
liberal N proud
(60,334 posts)They can return more to the shareholder when they have fewer people.
meow2u3
(24,761 posts)Two words: capital strike. That's the truth behind the the report.
http://www.huffingtonpost.com/robert-s-mcelvaine/capital-strike_b_965407.html
http://jacobinmag.com/blog/2011/09/the-rights-favorite-strike/
http://gapersblock.com/mechanics/2012/04/24/capital-strikes-capital-flight-and-the-wholly-privatized-city/
http://often-wrong-never-in-doubt.blogspot.com/2012/04/latest-capital-strike-charts.html
SoCalDem
(103,856 posts)and has made them a tidy profit since he took over....bastards