Has anyone done an analysis on hiring in businesses which require a long term investment and plan versus those that are relatively fly by night? For example, to build a new factory I have to have some expectation of what taxes and regulations will be ten or twenty years from now, while to rent a cart at a mall I might only need to plan a month in advance if I don’t need a year long lease on the cart. Are the “no planning” jobs coming back at a greater rate than the long-term jobs?
“...Are the “no planning” jobs coming back at a greater rate than the long-term jobs?”
I’m not sure- I haven’t seen any. My understanding is that most of the private sector hiring has simply been temp jobs.
The problem for the fly-by-night companies still remains that it is difficult to get a loan because the banks aren’t lending to them. And small businesses of course will be equally hurt by uncertainty with regard to taxes and future Obamacare regulations, etc., even if they aren’t building factories and dealing with physical assets.
From what I recall from over 30 years ago or so, for the Thanksgiving-Christmas season, those carts at the mall could cost nearly $10k upfront in space rental/electricity/drayage (or union payoffs)/insurance/fees/commissions. That was before inventory or labor costs.
With lowered traffic and restrained spending, who would consider that sort of investment. I wonder if it is less expensive now?