May 18, 2024

Economix: Profits, Not Payrolls, Are Growing

As we’ve noted before, today’s job market woes are no longer because of layoffs. Layoffs, in fact, are at a record low. The problem today is that no one is hiring those people who were already laid off.

A case in point from the Associated Press:

TAUNTON, Mass. (AP) — A Massachusetts employment organization has canceled its annual job fair because not enough companies have come forward to offer jobs.

Richard Shafer, chairman of the Taunton Employment Task Force, says 20 to 25 employers are needed for the fair scheduled for April 6, but just 10 tables had been reserved. One table was reserved by a nonprofit that offers human services to job seekers, and three by temporary employment agencies.

Shafer tells the Taunton Daily Gazette the lack of employers means the task force won’t have enough money to properly advertise the fair.

The task force has been organizing the job fair nearly every year since 1984.

Shafer says the cancellation reflects the current economy — even though things are getting better, companies are still cautious about hiring full-time workers.

This abundance of caution is hardly unique to Taunton. Across the country companies are still reluctant to hire — even though they’ve been doing quite well financially.

According a report today from the Bureau of Economic Analysis, corporate profits rose 29.2 percent in 2010. That is the fastest growth in over 60 years.

Article source:

Speak Your Mind