CEOs Weigh in on Employment in 2010
Posted on | December 10, 2009 | No Comments
More of America’s largest companies will reduce their staff as compared to hiring in the next six months, according to the latest survey of their CEOs from the Associated Press.
“Nineteen percent of the CEOs expect to expand their work forces, while 31 percent predict a decrease in the next six months, according to a quarterly survey from the Business Roundtable released Tuesday. That’s slightly better than the 13 percent who expected increased hiring three months earlier. At that time, 40 percent forecast cuts.”
“The CEOs also expect the overall U.S. economy to grow by 1.9 percent in 2010. That would mark a slowdown from the 2.8 percent pace in the third quarter of 2009. Last quarter’s growth followed a record four straight quarterly declines and was the strongest signal that a recovery from the recession had started.”
Economists say employment at large firms is likely to remain flat through much of 2010, since many companies already made targets. The largest group of CEOs (50 percent) expect employment to remain unchanged in the next six months. Unless there is a big change in operating structure, most large companies are holding to their current staff.
Small business may be the only hope for those job seekers in 2010.
Among Obama’s incentives for small business to hire are: a proposed new tax cut for small businesses that hire in 2010; an elimination for one year of the capital gains tax on profits from small-business investments; and an elimination of loan fees to small businesses, combined with federal guarantees of those loans through the end of next year.
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