Skip to comments.These Are The Reasons US Companies Are Terrified Of Hiring Right Now
Posted on 06/03/2012 6:29:45 AM PDT by SeekAndFind
NEW YORK (AP) Business has picked up. Yet American companies are too nervous to step up hiring.
The economy seems so gripped by uncertainties that many employers have decided to manage with the staff they have. They aren't convinced their customer demand will keep growing. Or they worry that Europe's festering debt crisis could infect the global economy. Or they aren't sure what Congress will do, if anything, about taxes and spending in coming months.
All that helps explain why U.S. employers added just 69,000 jobs in May, the fewest in a year and the third straight month of weak job growth.
"If you're anxious, you sit on your hands," said Chad Moutray, chief economist at the National Association of Manufacturers.
The U.S. government is also nearing its debt ceiling. It was just last summer that bickering Congress rattled markets by nearly allowing the government to default on its debt.
State and local spending levels are uncertain or shrinking as governments try to shrink their own debts. The result is smaller budgets for schools, transportation projects and services.
Companies also complain that changes in environmental regulations and business subsidies are too hard to predict and plan for.
Here's a look at why some individual employers remain hesitant to hire:
For many companies that build highways, hiring plans are on hold while Congress debates long-term plans to pay for construction projects.
"I've got paving crews that are ready, willing to go to work next week, but I don't have contracts that I can have them go to work on," said Ed Dalrymple, vice president of Chemung Contracting Corp., based in Elmira, NY.
The company, which operates gravel quarries and asphalt plants and does highway and airport runway paving, relies heavily on government work in New York, Pennsylvania and Virginia.
(Excerpt) Read more at businessinsider.com ...
“NEW YORK (AP) Business has picked up.”
al qaeda press starts another propaganda piece with a lie. When the first words out of one’s mouth are lies... do not be surprised if you smell burning sulfur. I am speaking of Ass Press.
Vultures eat aplenty on the carcasses - for a while. Then it's nothing but bleached bones until the survivors feel it is safe to come out.
No. The AP is covering for the Democrats as always. Frankly, I'm surprised they didn't blame the Republicans for everything.
I also note that the AP’s idea of business is a company that is almost entirely dependent on government contracts. Not that there's anything wrong with that, per se, but we are in a bit of debt here, aren't we? What should we do, spend trillions more so even more people are dependent on government funny money?
Well the road construction is sure at a high level here in eastern Kansas. It seems like half the roads in the county are under construction.
IMHO, the headline is over the top. Business people I know are not terrified. They are, however, being very cautious and taking a wait and see attitude about the future.
Although I don’t agree with many of his philosophies, I think there will be a hugh sigh of relief if Romney wins in Nov.
“I also note that the APs idea of business is a company that is almost entirely dependent on government contracts.”
The Obama SCHRODINGER ECONOMY
Not quite alive, not quite dead.
If you depend on GOVERNMENT for your living, you are doing well.
If you depend on the private sector for your living, it sucks.
I skimmed the article and didn’t see ObamaCare mentioned. That’s a reason as well, because of the increased costs involved.
President Romney + a GOP Senate would unleash an orgy of hiring, imho.
Each individual makes an internal judgment...
Am I likely to have a greater than zero Return on Investment
If yes - proceed
If no. - stop
The average entrepreneur is estimating a less than zero ROI
On incremental expenditure of Capital
Hence, no new businesses, no new jobs
Yep - and just last week, some detested Repubs in the House mentioned this and said the Senate ought to pass a damn budget...
What about Obama’s war of attrition on business?
How much has Trans-Canada Pipelines spent dealing with extra regulations, enviro studies, etc. for the Keystone Pipeline, required by Obama’s EPA? Or the moratorium on Gulf drilling that the EPA imposes? Hassling Texas refineries?
Face it, in a thousand ways major and minor, this Administration has sent a quiet message: we hate business, we view you guys as the enemy, and we will do everything we can to either stop you or tax you. And business is listening.
But Capital is mobile. It doesn’t have to be invested, or even stay in the US. The availability of capital was what always made the US unique, and helped it grow.
I would agree...the word caution fits more appropriately.
It doesn’t matter if you have a company of 10 people, 100 people or 1000 people....you really aren’t sure about the cost of health care, and where this law leads to. You also don’t feel any gut reaction to the economy....as long as the Senate won’t participate in the budget business, there’s no reason to trust the future. And, if you look at the banks in America....just how concrete are they?
I will suggest this...it doesn’t matter who wins the presidency....it’s the overall behavior of Congress and the Senate that matters. I’d be just as happy picking 100 guys randomly from a VFW convention to be Senators right now....instead of the current group that we have.
Same thing, individual entrepreneurs see that Government is toxic to the profitable use of capital, so they cease to engage, and jobs, business, profit evaporates
I skimmed the article and didnt see Obama
Care mentioned. Better response.
Millions of Americans are sick and tired of not having jobs and those who have not taken public assistance have burned through their savings, too many have lost their homes and aren't sure what will come next.
Well there ya go.
Businesses started “sitting on their hands” the morning after Barry Soetero was elected. And even though I’ve struggled because of it, I sure as hell don’t blame them.
Wait until the EU collapses and things will get really horrid.