Not only little citizens hoard their money, but big companies do

Gist: There is still looking good on earning numbers. However, it is not quite the sales do the jobs but the layoff helps the expense saved on personnel.

Many big companies now is cutting their expense and hoarding the cash in case of the rainy day. Personnel are usually the primary target that can save a lot of money when there is no sales number rising up. Nobody wants to spend money so that the demand in the market is falling. When there are no demands for companies’ products, there are no jobs for people to make those products. People do not get paid so they will not be willing to spend money on anything. This cycle then will keep running over and over until the recovery arrived.

Different expectation for job recovery

Gist: The job market seems not to recover as quickly as we think. Although there indeed is increasing job growth, the growth of working-age population is increasing.

The severe recession brought unemployment figure to two digits, unlike the mild ones before. Plus the population of high school and university grads, it takes a lot of time to overcome the jobless situation. Some employers start to utilize people as part-time hiring. They do not hire people as full-time employees instead of consultants. Many economists believe the financial rescue and stimulus spending of the past two years have helped. They say without them, the economy might still be losing jobs today.