Economics
U.S. Companies Remain Wary of Hiring
Despite positive indicators, companies are cautious with headcount
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Consumers in the U.S. are more confident about the economy, and housing is showing signs of life. Companies in the Standard & Poor’s 500-stock index, excluding banks and utilities, are rolling in cash: $1.01 trillion in the first three months of 2012, a near record. So it wouldn’t be far-fetched for American companies to take advantage of these developments in a traditional expression of confidence. You know, hiring.
Yet it doesn’t look like that’s going to happen anytime soon. The share of U.S. chief executive officers planning to add employees or expand investment during the next six months declined in the third quarter. And according to a Business Roundtable survey, an even larger number said they planned to cut jobs and spending.