Are Jobs Coming Back? Not According To CEOs
There have been a few times on this blog when I have stated that my belief is that most of the jobs that were let go in 2008 and 2009 we’re never coming back. I’ve had that confirmed by a news story last week where interviews were done with many CEOs on the subject. However, it seems that most of those jobs aren’t coming back for a different reason than what I had believed.
When this group of CEOs was interviewed, it seems that they were actually willing to think about hiring back workers except for one thing. They don’t believe that the economy is going to turn around for at least another few years, and they also don’t believe that the shoppers are going to come back and start purchasing the way they have in the past.
As strange as it seems, they might not be too far off the mark on that one. The economy has grown at a lethargic rate this entire year, and consumer spending has been relatively flat. There are so many industries that in the past had enjoyed great growth and revenue that suddenly are tanking beyond belief. Many specialty stores have gone out of business. Many casino cities such as Las Vegas and Atlantic City have shown drastic reductions in visitors. The housing industry is in shambles for most of the country. And the travel industry has taken it on the chin as well, especially southern coastal cities this year as a result of the oil spill. For what it’s worth, even traditionally fiscally strong businesses such as Wal-Mart have struggled, which wasn’t predicted because of their low prices.
This begs the question as to what we really need to stimulate the economy? It’s somewhat ridiculous to tell people to get out and spend their money when many people are just getting by making sure they can pay their bills. With the national average sitting at 9.5% as it pertains to the unemployment rate, and with no real remedy in sight, most people are holding onto their money just in case they lose their jobs. More of them are worried that there are no other jobs to go to if they’re suddenly unemployed, and they’re correct to have that assumption.
Are there any real solutions to this mess? I’ve offered my suggestions, as have others I’m sure, but someone’s going to have to do something either bold or drastic to get things moving forward. I’m afraid that someone is going to involve the government. And the government being in the state of flux it’s in right now, I don’t think we have a prayer.