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Hiring Fewer Workers than They Need

Date: 2011-02-07T09:01:05.453
Author: Tim Iacono
Byline: The Mess That Greenspan Made -- I am a retired software engineer and, in addition to writing this blog, I am also the founder of the investment website Iacono Research and the author of a weekly newsletter that focuses on investing in natural resources.
Editor note: Most people have a hard time firing people. They don't want to hire people only to fire them. And let's not forget the costs of hiring and firing employees. Then again ... it's the economy stupid.
Number of Views: 1978

Hiring Fewer Workers than They Need

Since no historical data was provided it’s impossible to get the proper context, but, this new Gallup survey indicates that one of the major reasons hiring has been slow in this economic recovery is that small businesses are adding fewer workers than they really need.

You would think that, in any economic environment, there will always be some companies that hire less workers than they need – cautious to expand given the costs associated with additional employees – but 42 percent does seem quite high.

As for the reasons behind this, uncertainty about future revenue and cash flow top the list while the inability to find qualified workers is third and healthcare costs are a distant fourth.


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