The obvious, explained

by SixFigureStart | October 20, 2009

  • My Vault
It's no wonder the newspaper business is failing -- all it prints is stuff we already know! (Or think we do.) An article in this morning's Wall Street Journal is titled "Employers Hold Off on Hiring," as if it were news. Though it cites a couple of instances where companies have (tentatively) expanded, it admits that most of them haven't. At least it explains to the masses why this is the case: It's a perfect storm of two parts employer uncertainty and one part employer efficiency.

The lack of confidence relates to both skepticism regarding the strength of the supposed 'recovery' and the potential result of anticipated legislative moves (like those concerning healthcare and executive pay). Also, new cost-effectiveness resulted from cuts that forced some employees to take on the work of banished ones. In addition, many firms, either as a substitute for or in addition to layoffs, reduced hours; these hours are lying in wait, ready to be used again when employers decide to expand production, pre-empting the need for additional hiring.

So yes, despite some economic signs of growth, employers are still hesitant to act. Now the topic is yours: What will it take before companies large and small begin to repopulate? Let us know what you think. (Any posts that liken an improving economy to a soaring, shiny flying saucer/balloon will be ignored.)

--Posted by Todd Obolsky, Vault Staff Writer

Close button

Get tips on interviewing, networking, resumes, and more directly to your inbox.

No Thanks

Get Our Career Newsletter

Interview, resume and job search tips emailed directly to you.