http://money.cnn.com/2013/04/10/news/economy/jobs-hiring-layoffs/index.html?iid=SF_E_River
Far fewer Americans are getting fired or laid off these days than they were in 2009. In fact, layoffs are back at their pre-recession lows. However, hiring has not returned to 2007 levels. This means firms are holding on to their current workers but still don't seem ready to hire new workers. Meanwhile, the population has grown. In order for the unemployment rate to come down significantly, improvement in the job market needs to come from more new hires, not just fewer layoffs. But the sad truth is, companies create profits, not jobs. Consumers with money to spend create demand and the jobs follow. One can only hope.
2 comments:
This phenomenon is clearly evidenced by the large number of firms that have reported missing revenues but meeting earnings estimates in their recent earnings calls. I think this decrease in firing without increasing hiring is due to the fact that employers are still wary of making a decision before the economy improves. If we get a major positive sign from the government over our debt I think we could see a massive acceleration in hiring.
Another reason for the lack of hiring could be increased responsibilities or productivity. A lot of companies cut workers while having other employees absorb the work of the employee that was laid of. Alternatively, if workers are becoming more productive, there is no need to bring on more workers.
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