Why companies don't hire....

[Coito ergo sum]

More jobs unexpectedly shed in March in the US: http://www.bloomberg.com/apps/news?pid= ... BSTM&pos=2

"Companies are still hesitant to add workers until they see sustained sales gains and are convinced the economic recovery has taken hold."

I take issue with the above quote from the article, however. I don't think companies wait on whether the economy in general is recovering. They determine if their business is in need of more employees to sustain growth in that particular company. It's not like managers sit around in a company and say, "what do you think? Economy rebounding enough?" No - they sit around and ask each other whether sales and projected revenue in their company require new employees to sustain.

Many companies expand in a contracting economy, if they are market leaders and innovators, and many companies contract in a good economy when they become less competitive.

Thoughts?

[Xamonas Chegwé]

I agree to an extent. However, what is affected by the gloomy economic climate are companies' predictions of future sales and growth. After all, a company can't base its employment policy on actual growth, can it?

[Coito ergo sum]

I agree to an extent. However, what is affected by the gloomy economic climate are companies' predictions of future sales and growth. After all, a company can't base its employment policy on actual growth, can it?

It's a combination. One typically tries to make do with what one has on hand, until it becomes evident that help is needed or they won't be able to fulfill orders and complete projects. For most businesses there aren't the resources to do a lot of complex "projections" and economic forecasts. They look at sales trends, order trends, and other things particular to the business, along with the experience of the managers/owners who "know" about their industry.

$50 and $100 million companies, I can assure you, very often proceed based on their owners/managers understanding of the business and its trends, and not on economic forecasts.

[AshtonBlack]

Oh there's been a recession? Didn't notice. Not with this iron clad defence contract. (Well till it runs out in 2013 ...)

[Trolldor]

One thing about recessions, middle class families feel it when they downgrade their internet or start car pooling.