May 4, 2012

SandBoxBlogs: Vail Daily "Why small business owners are hesitant to hire"

Good article. 

Joyce M. Rosenberg:
"NEW YORK (AP) — Ken Levien has no plans to hire more people for his real estate project management company in New York. He says his business has only about 85 percent of the amount of work it can handle because the building industry is still hurting from the recession.

"Things are looking down in the construction business in New York City," he says.

Levien has a lot of company. Many small business owners aren't hiring or expanding because the outlook for the economy, or their own companies, is uncertain.

That raises the question of whether small businesses will give the economy the boost that it needs. Economists say that in past recoveries, small companies were the first to hire. When the economy was improving, they were more nimble than large companies because they didn't have the bureaucracy that can slow the hiring process. Their hiring helped propel the economy forward.

The economy is growing, but that growth has slowed — and so has the pace of hiring among business with less than 500 employees. The U.S. economy grew at an annual rate of just 2.2 percent from January through March, according to government figures. That's down from the moderate 3 percent growth during the last three months of 2011. Making things worse, the pace of hiring by small businesses is slowing, according to the payroll company ADP, which issues a monthly report on employment at companies in the private sector. ADP says that employment at small and medium-sized businesses rose by 181,000 in March. Employment rose by just 116,000 in April......"  (Read more?  Click title)

"Unapologetically pursuing and tracking patterns within the news others make since 2010."

1 comment:

MR said...

Small business is going to keep the wagons circled until we see who's in the white house and how the election goes. That's nearly another year from now before anything worthwhile can be had. It was one of the best things Perry had going for him was his day one wrecking ball plan to finally use power to dial back all the departments and policies they're fighting and deadlocked on and plug the dam. We could've see real relief by this time next year and within his first month in office. Romney is going to cruise, he's not a lame duck and he's far better than Obama but he will cruise down the middle. I don't look for relief to feel free enough to start hiring again until at least 2014. Construction in Garfield, Eagle, Gunnison and Pitkin is not going to rebound it will only stay at the low end of solvent. Too much rides on the backs of America's hard hats to let politicos influence too heavily. Construction and hard hat trades are always the foundation of our national economy. May not be heroes like military but the construction industry knows how to get through. That's one of the reasons I stay so hard on tourism promotion. The two industry markets should walk hand in hand. Having Gould build trails is not what I'm talking about. Vail and Eagle have got more of the right idea than the other two. Here at home we spin wheels on county and city levels, it's not the time to be even thinking about doing anything that doesn't guarantee an immediate ringing ka-ching of the cash registers taking in revenue.