American Morning

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December 4th, 2009
10:45 AM ET

Companies need confidence to hire again

The Labor Department released November unemployment numbers today. The report showed 15.4 million Americans are now unemployed and seeking work. That's down 325,000 from the October reading.

And while President Obama is brainstorming with his finest economic minds to find jobs for them, the fact is few firms have the cash or the confidence to add staff right now. Our Allan Chernoff reports in this American Morning original.

Read more: Job market shows big improvement


Filed under: Economy
soundoff (14 Responses)
  1. somaie

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    December 14, 2009 at 6:19 am |
  2. Nanci L

    President Obama didn't create this current mess and he isn't out to hit small businesses with taxes. However, he should tax the big corporations that outsource jobs overseas and he should give tax credits to the little guys that create jobs in this country.
    I agree that athletes and entertainers are overpaid. Why should they be paid millions (and even billions) when the people who go to the sports events and arenas have to struggle to pay for the high price of admission. It's strange, but the lowest paid professional athletes, hockey players, are generous in donating time and money to chartitable groups.

    December 8, 2009 at 9:58 pm |
  3. Sean

    Small businesses need to provide health care, or else they can go out of business for all I care.

    Jobs won't be created until we can find a way to sell things to other nations. The last decade of job growth was mainly service-related. Of course when money gets tight we give up services which took a big bite out of the jobs available. We need to MAKE things that can't be copied and SELL them to OTHER COUNTRIES. Anything less than that, and the USA is doomed.

    December 8, 2009 at 11:10 am |
  4. mike g

    it is pretty bad when in a time like this we still pay people Billions of dollars to play sports. However we pay the people that protect our lifes very little. If we focused some of that money on creating jobs instead of paying people to play games our economy will grow. I live in flint mi, today our govaner will be in town to talk about cutting more law enforcment and fire men.How about we cut some basketball,baseeball,and football players and save jobs wherer it counts instead of lining someones pocket cause they can hit ,cath ,or trow a ball.

    December 8, 2009 at 8:07 am |
  5. Heather

    Obama seems to think Businesses should just start hiring because Obama wants to create jobs.

    Well Obama needs to understand that a business is not a social service or welfare agency. They create jobs if they need a job done; not because they just want to hire people.

    Isn't Obama about to hit businesses with higher costs for health care and higher costs due to his climate change plans? When a business is hit with higher costs it looks for ways to reduce expenses. I am guessing that we will very soon see layoffs and downsizing.

    When a business has to absorb the cost of cap and trade and it looks at the now higher per employee cost due to health care reform, what do you think they are going to do? Higher more people?

    More likely they will get rid of employees, which have now become even more expensive to have!

    Way to go Obama!

    December 8, 2009 at 5:37 am |
  6. Disgusted

    One of the biggest issues we have, that has caught up with this country is outsourcing. Many companies have outsourced many of its service jobs that can done here. Companies want profit, profit, profit but what if anything is done with the profit once it is made. Nothing! Employers don't give great raises or cheaper benefits. The outsourced service is not better and neither are the products being created.

    December 7, 2009 at 7:10 pm |
  7. To Michael Curoso

    That's good... unless your job inheritantly doesn't make money. Quality Assurance, for example. It's hard to tie quality of product and consumer satisfaction to how man $$$'s you just made for the company. Oh well.

    December 7, 2009 at 1:53 pm |
  8. VAGuy

    Great article – but the elephant in the room is that companies hire to create profits. This is the fifth domino that was not mentioned. Companies do not create jobs in a vacuum, they create jobs to generate profits for their owners.

    As in this article, my company is quoting many jobs at low/no profit just to keep the lights on and avoid laying off any more of our valued employees. But we certainly won't hiring any new employees for zero profit work.

    Today, economic conditions are dictating our low/no profit work. But looking forward as the recovery unfolds, the increasing demonization of the profit motive and the increasing raids on profits of small businesses (via a wide range of tax increases and other costly mandates on healthcare, etc.) will suppress hiring long into the future.

    Again, business owners hire people to generate profits. Period. Unless we can embrace and actually encourage responsible, profitable small businesses where risk taking and innovation are rewarded, hiring will suffer. Under new tax laws and other government policies, if adding an employee no longer has the same return on my investment it used to, I am less likely to hire. I will look for other ways to generate those profits that don't involve the same level of hiring.

    December 7, 2009 at 11:50 am |
  9. Michael Angelo Caruso

    Great vid message. The smartest way to hire–now or at any time–is to bring in people who "pay their own freight."

    Only hire folks who bring in revenue or save money. Be very specific about how much money and establish metrics before hiring.

    Michael Angelo Caruso, Communication Consultant
    Edison House
    Royal Oak, Michigan

    December 7, 2009 at 8:57 am |
  10. Joe

    There are two kinds of jobs...a sustainable decent paying manufacturing related JOB that requires education (some training or significant education depending on the work level of the individual worker) or a job in the service industry that requires little or no training...to be fair some service jobs require significant training but they do not represent the majority of service jobs. Service jobs typically support one to two additional jobs. In truth the government cannot create the kind of JOBS we need...manufacturing JOBS ..which support up to five + additional jobs for each mfg. JOB. Buy American and you just might save YOUR job because now the domino effect is really in play...you lose one manufacturing JOB...you might lose up to 5+ more in the process!!! I think that is how the job (all jobs)loss numbers skyrocketed!! The same would work in reverse...add 200,000 manufacturing JOBS and you should get 1,000,000 jobs in total...add more and we could be on our way to a real recovery. How about something like this...nothing larger than a five gallon bucket or 10 pounds should be imported without an import duty. All machine tools should be manufactured in this country...milling machines, lathes, punch presses...etc. All tv's, computers,large electronic devices, refrigerators, washers and dryers, stoves, etc.should be manufactured in the US too. If foreign countries want to invest money to build plants here to mfg. these items ...fine..they will abide by our rules to do so. They can keep the profits...who cares...we want the JOBS. Some of the requirements would have to be would be that they cannot shut a factory down without a reasonable warning and their stock would have to be tradeable on an American stock exchange.The government cannot enact import LIMITS because our biggest trading partner holds most of our debt...but we can and I believe we will have to place import duties on products to protect our economic health. As our economy tumbles down there will be fewer and fewer middle class kids able to afford college.. If we don't do this kids who are not going to go to college..for whatever reason...will not have any kind of decent JOB. Communities are cutting back on services because of shrinking tax revenues. We need to BUY AMERICAN PRODUCTS to save our future, cities, schools, states, our very culture! WE ARE THE MOST INNOVATIVE SOCIETY in the history of the world...don't tell me we are going to let this slip away because we weren't smart enough do something about it. And about those countries who hold our debt because we decided to give our manufacturing JOBS away...just how do you propose we are going pay that debt off...not by selling pizzas and burgers.

    December 7, 2009 at 7:43 am |
  11. maryangels

    Companys will not hire untill government cuts taxes on companys large and small not just one or the other, and cuts spending just like
    managing your own house. By spending more does not make anything better It is just common sense. Until that happens there will be no movement in hiring people. If the government hires how much will that cost the tax payers for years to come. Until no one has any money left? Then the government will have it all. Is that what this administration is doing?

    December 5, 2009 at 3:19 pm |
  12. Art

    Wait till the holidays are over, than ask the same questions. Most of the temp jobs will be over, there goes the #'s again.

    December 5, 2009 at 8:26 am |
  13. Nanci L

    I am sure that Waters Construction is a decent operation and his concerns are real. However, I believe too many other businesses think the only way to make money is to get by with the cheapest labor force possible. Currently, many businesses lay-off full time employees and go to temporary help because it is cheaper and they don't have to pay benefits. The big American corporations have outsourced everything overseas so that they can use semi-slave labor for their workforce, pay virtually no taxes and the idiot Americans buy these cheap, inferior products.
    However, if more and more Americans are out of work, losing homes, cars and the ability to finance their children's education, there won't be any people left who can afford the foreign goods so maybe business might come back to this country.

    December 5, 2009 at 1:11 am |
  14. A. Smith, Oregon

    Company's need confidence?

    Unemployed workers are the ones needing confidence. Unaffordable health insurance, having one's tax revenues pay to prop up corrupt foreign leaders and flood the world with Afghanistan's heroin do not inspire employees to pony up their hard earned cash.

    December 4, 2009 at 4:15 pm |