As is so often the case in this economy, the market is sending mixed signals. From one article on abcnews.com: The economic strength, both in U.S. and international markets, plus cost cuts, higher rates and fuel surcharges led to a 33 percent increase in first-quarter profit. UPS boosted its full-year outlook when it pre-released its earnings two weeks ago. And one paragraph later: UPS Inc., also known as United Parcel Service, restructured its business over the last 18 months, cutting jobs in the process. The shipper doesn’t plan any significant hiring anytime soon, at least until the recovery is on more solid footing. Jobless recovery anyone? The difficulty is that… Read More
Continue ReadingHiring Time
According to this CNNMoney.com article, 2010 hiring will be steady and growing (emphasis mine): “We see a healthy expansion under way, although it will take time to reduce economic slack and repair damaged balance sheets,” said Lynn Reaser, president of the National Association for Business Economics, which conducted the survey of 48 top economic forecasters in late January and early February. I wonder if those are the same “economic forecasters” who are perpetually surprised by the latest economic news? Nonetheless, I don’t mind a little positive outlook during this recession: The NABE panelists expect that jobs will return slowly this year, forecasting an average monthly increase of 50,000 jobs in… Read More
Continue ReadingWhy Companies Hire
From abcnews.com regarding the “jobs proposal” working its way through Washington: Obama’s proposal has an additional provision that would award $5,000 tax credits to companies that add workers in 2010. Honestly, has anyone in this administration ever run a private company? I’m no economist, but my experience is this – companies hire more workers when revenue increases (i.e. growth). One-time minimal tax credits do not spawn hiring booms. This fact puts the pressure solely on the sales department to find new prospects and close more deals in this depressed economy. No small feat.
Continue Reading2010 Unemployment
9.3 to 9.7% That’s right, that is the expectation for the 2010 unemployment rate from the Federal Reserve based on this abcnews.com story. I find that number shockingly high, but it is realistic. Then there is this bit of information from Reuters (emphasis mine): Speaking at American Economic Association’s mammoth yearly gathering, experts from a range of political leanings were in surprising agreement when it came to the chances for a robust and sustained expansion: They are slim. Many predicted U.S. gross domestic product would expand less than 2 percent per year over the next 10 years. The depressed economy combined with the high unemployment numbers has started to change… Read More
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