Many companies cut to the bone to survive and they find that profit can go up without hiring. The principle of diminishing returns is working right now, and the recession will not be over until they are in need of hiring new people.
“Many companies cut to the bone to survive and they find that profit can go up without hiring. The principle of diminishing returns is working right now, and the recession will not be over until they are in need of hiring new people.”
Plus there is great uncertainty about tax and regulatory policy. We know taxes are going up and government regulation will be more severe. However, we don’t know the full impact of taxes and regulation because the Obama administration has yet to reveal its real plan. In the face of uncertainty, it is impossible to plan for the future. It would be insane to expand in the face of sluggish demand and inability to project future expenses. Hiring comes with expansion plans. Few are willing to expand in this uncertain environment.