Hiring Prospects Improving despite no one Hiring Anyone unless they Absolutely have To

Posted by PITHOCRATES - June 17th, 2012

Week in Review

The economy is horrible.  And it has been horrible for the last three and a half years.  Despite the Recovery Summer.  And all the reporting of an economic recovery that has never materialized yet other than in the wishful thinking of government planners and their economic advisors whispering sweet-nothings in their ears.  Telling them more Keynesian economic policies can fix the previous Keynesian economic policies that have failed to do anything but make things worse.  Despite everything they have done the past three and a half years no one is hiring yet (see Around world, companies loath to add jobs: survey by Nick Zieminski posted 6/12/2012 on Reuters).

Hiring prospects have improved slightly in the United States and other major economies but companies are only adding workers when they have to, according to a survey by Manpower Group (MAN.N), the global employment services giant.

Manpower in a quarterly survey describes a vicious circle in which stronger consumer spending is being reined in by weak hiring, and vice versa. Spooked by Europe’s ongoing debt crisis and a slowdown in China, hiring managers in large economies are reluctant to invest in staff until they see a rebound in demand for their goods and services.

“Companies are in tune with their demand and surroundings,” Manpower Chief Executive Jeff Joerres said. “Hiring has been put into only-if-necessary mode. They can spring back, but there were too many times in the last 36 months when they thought it was safe to go in the water and only found out it wasn’t…”

Its poll of 18,000 U.S. hiring managers follows two months of disappointing U.S. jobs growth. The U.S. economy added just 69,000 jobs last month, less than half what was expected, and the unemployment rate ticked back up to 8.2 percent.

Two months of disappointing U.S. job growth?  Try three and a half years.  The official unemployment number (U3) was under 8% for only a short part of President Obama’s first year in office.  It was below 8% when he promised that if we passed his stimulus plan it would never go above 8%.  For the year or so after Congress passed his stimulus plan the official unemployment rate (U3) flirted with 10%.  Which if you’re keeping score is above 8%.  The U6 unemployment rate (which counts the underemployed and those who gave up looking for work) has been north of 16% for about 2 years of his administration.  Again, if you’re keeping score, that’s above 8%.  And closer to Great Depression unemployment.  The U6 rate is still north of 14%.  So, no, it hasn’t been 2 months of disappointing job growth.  It’s been three and a half years of disappointment in the Obama economic recovery.  Or lack thereof.

This is why no one is hiring unless they absolutely have to.  Because no one has any faith in the economy.  And everyone is expecting things to get worse when Obamacare goes into full effect.  At 2,000+ plus pages and a lot of ‘as the secretary directs’ included in that law leaves business owners with nothing but apprehension.  They have no idea how to plan with these kinds of unpredictable variables.  These are just not days to be hiring employees if you’re a business owner. 

This is part of the reason the employment picture is so horrible in America.  The other reason is the anti-business Keynesian economic policies of the Obama administration.  Which lead to high taxes, high spending and high debt.  Which has killed job creation in America.  And throughout the Keynesian world.  Because Keynesian policies do not favor business.  They favor activist, interventionist, tax and spend government.  Who intervene actively in the private sector to raise money via taxes to spend in the public sector.  And yet the government’s economists are always surprised by the poor economic data their Keynesian policies produce.  Which begs the question if they are so blind to the obvious should they really be advising the government?

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