Businesses Learning to do more with Less

New jobs being hindered by the rise in productivity.

Reports are coming in now, confirming what most Conservatives already saw. The rise on the New York Stock Exchange, did not mean a rise in jobs, it actually meant just the opposite. Companies are learning to do more with less, and making do with fewer people, reducing the rate of new hires. With the Economy unstable, and little effort coming from the Administration, Companies are learning to reduce staff, and expect more from them to keep a high profit margin.

“Companies across the economy are finding ways to do more with fewer workers, dimming hopes that hiring will take off anytime soon.”

http://news.yahoo.com/s/ap/20091105/ap_on_bi_go_ec_fi/us_economy

We seen the market rise, and the Government call they had fixed the problem. They had not, they instead forced companies to adjust to what was left for them. And the free market when pulverized by a Government that wants total control, will adjust to its situation, as long as it can.

What this means is, the market will find a way to survive, but the Country will suffer for it. Now the Left will look at this, and say this is why we do not need a free market, but that is a copout, ignoring the situation. The Right, will look at this, and say either that this was the left’s fault, which a lot of it was, but not all of it; or they will say that this has been coming for some time, which is the truth.

Our politicians from both sides have done a lot to ruin this country, and people have bickered about who is at fault. It has been coming, and both political sides played major roles in it.

So now we need to address the situation at hand, but will Obama and his crew? Will Pelosi and her bunch? So far none in Capital Hill have dealt with this, indeed the Stimulus package was only 22% for stimulus, and 78% pork, and even the 22% was a placebo, and not even a real attempt.

AP still goes by the false figures of 9.5% out of work, while the actual number is 17.0%, and has been climbing around 0.4% a month. Health care is not going to help, if fewer and fewer people are working. But at the rate the economy is going, now one will be able to afford anything, not even the Government, which has already over spent the last Administration.

“Productivity, a measure of employee output per hour, jumped at a 9.5 percent annual rate in the third quarter, exceeding the highest economist forecast, according to Labor Department figures released today in Washington. Initial jobless claims dropped by 20,000 to 512,000 in the week ended Oct. 31, the fewest since January.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aN0r7hTU6VAE&pos=5

Again Bloomberg notes the equation that increased productivity with fewer personnel, means higher revenue. But they also make the claim that this will lead to new hires. I ask one simple question, Why?

With the economy as unstable as it is, new taxes being forced on society, and new ones coming, lack of anyone being able to communicate to our representatives, why would any business want to even think of new hires? It is not financially feasible to anyone. And even one that will hire, they will have to hire at severely reduced wages, and that will be of little help.

Right now, this is all on Obama, he had a chance to correct things, but he will only work with the Democrats, and has divided the government, and done nothing for society. Even during Bush’s Term, when he inherited Clinton’s mess, he made a change and improved the economy some. Obama in the same time span has worsened it dramatically.

“The government said 5,749,000 people filed continuing claims in the week ended Oct. 24, the most recent data available. That was down 68,000 from the preceding week's revised 5,817,000 claims.”

“The figures do not include those who have moved to state or federal extensions, or people whose benefits have expired. “

http://money.cnn.com/2009/11/05/news/economy/jobless_claims/?postversion=2009110509

Which is why I use the U-6 data, because it includes what the common reports drop, thus a more accurate snapshot of what is going on.

In recent reports, CNN reports that two states have filed that they actually had over1000 fewer claims, while twelve states report an increase of more than 1000 claims. California jumped over 14,000 new claims. This is showing that the stimulus has never worked, and will not work. It shows that this Administration has no earthly idea what they are doing, and do not care about it either.

So Businesses are doing what they have to, to survive, they are learning to deal with what they have left.