The Recovery Myth: Companies Aren't Hiring

[marmar]

from the Working Life blog:



The Recovery Myth: Companies Aren't Hiring
by Jonathan Tasini

Tuesday 20 of October, 2009


If the criteria used for deciding whether the recession-depression is over is focused on bonuses for banks and Wall Street executives, then, hallelujah, the good times are rolling. But, if the criteria is people getting jobs, um, well, that isn't happening (courtesy of The Wall Street Journal):

Companies across the economy are holding off on hiring even as the profit outlook improves, amid economic uncertainty and their own success at raising productivity in rough waters.

Hiring always lags behind in economic recoveries, but the outlook this time is worse, many economists say. Most forecasters now expect a prolonged period of high unemployment, even though the government is expected to report next week that the economy grew in the third quarter, after four quarters of contraction. That is sure to frustrate the jobless and could be a problem for the Obama administration.

There are several major factors behind the trend, which is coming on top of sharper-than-expected job cuts in the recession. Many businesses have nagging doubts about the durability of the upturn, attributing much of the recent growth in orders to a move by their customers to rebuild inventories and to government stimulus spending, rather than underlying strength in their markets.

If the economy is about sharing prosperity, first and foremost, then, talk of a recovery can't begin until people have real jobs again.


http://www.workinglife.org/blogs/view_post.php?content_id=14534

[OhioChick]

1. K&R n/t

[BeatleBoot]

2. Businesses are cutting spending to achieve profit targets

They are not increasing sales.

DOW over 10,000 on profit news, but it's due to cutting costs and outsourcing rather than increasing sales.

Foreclosures continue.

This is going to be messed up for a pretty long time.

[Mind_your_head]

6. Understand "THE CHANGE" and why the Dow can be so high right now

American corporations have put many/most of their "operations" overseas. So while the US might not be doing very well at the moment, in the global arena, US-based corporations are doing GREAT!

The world has changed. There's no fighting it. The longer we ignore 'the change' ~ like menopause, the worse off we will be.

Peace,
M_Y_H

[tonysam]

3. And if fewer people can get jobs, fewer people have money to spend

and therefore jobs aren't created, hence no recovery.

Why didn't the Democrats, including our president, propose job training programs back in January? Why waste precious time bailing out Wall Street or getting bogged down in health insurance reform?

[Cassandra]

4. Health insurance costs...

are a major drag on the economy and suppress entrepreneurship.

[tonysam]

7. Not as important as jobs

Health insurance reform doesn't pay the bills or put food on the table.

The wrangling over "reform," which isn't going to do one bit of good, obscures what is REALLY important.

[Cassandra]

11. If I could pay less than $1000 a month...

for health insurance, that would sure as hell pay bills and put food on the table. Of course jobs are important, but with the repukes screaming socialism at every attempt to have the government intervene where private business fears to go, it's all uphill.

[Ruby the Liberal]

9. Many of the unemployed don't qualify for jobs programs

as we have 4-year and advanced degrees. That gets you turned down as the success rate of teaching a welder to be an electrician has a higher rate of placement success and you are overqualified, therefore don't qualify. If my local Unemp office is am indicator, there are WAY many of the former than the latter.

[Ardent15]

5. k and r nt

[Ruby the Liberal]

8. "If the economy is about sharing prosperity..."

That is quaint. :D

The economy is "I got mine, yer on yer own". People with jobs are wearing multiple hats. Salon.com today suggested that the moral fabric is about to tear. I suggest that it won't tear until the revolt comes from the working stiffs pushing back about working 3x people's jobs for 90% of 1 job's pay and they HAVE to start hiring in response.

The unemployed are an inconvenient (and largely invisible) group.

[alittlelark]

10. +1

[Kievan Rus]

12. They are hiring...in India, that is

[Karmadillo]

13. The little people have jobs being the little people. If they can't figure out a way to make

that pay, that's their problem. The people who matter seem to be doing just fine.

[bertman]

14. Our little company just called back one laid-off worker. I'm hoping it's a trend.

[grace0418]

15. There are a lot more freelance jobs lately. I've been so busy I can't believe it, and so have

all my other freelancer friends. I hope it keeps up.