Please read the following bloombergbusinessweek article from the web pagehttp://www.businessweek.com/articles/2012-10-04/u-dot-s-dot-companies-remain-wary-of-hiring#p1.the abstract of the article is as follows:
Question:
Please read the following bloombergbusinessweek article from the web pagehttp://www.businessweek.com/articles/2012-10-04/u-dot-s-dot-companies-remain-wary-of-hiring#p1.the abstract of the article is as follows: abstract according to "afraid tohire" (bloomberg businessweek, october 8-14, 2012), consumers inthe united states are now more confident about the economy, and housing pricesare rising, which is good for sellers if not for buyers. companies in thestandard & poor’s 500-stock index, excluding banks and utilities, are saidto be "rolling in cash." despite this favorable situation, the share of u.s. chief executive officersplanning to add employees or expand investment during the next six monthsdeclined in the third quarter of 2012. according to a survey, an even largernumber of ceos said they planned to cut jobs and spending. why? several factors are thought to be involved: despite gains in consumer sentiment, business revenue continues to be weak. enterprise cost controls are adversely affecting job growth. some big companies have decided to accelerate or expand payroll cuts they’d previously announced. bank of america, hewlett-packard, and staples are examples. financial firms u.s. job postings fell 17 percent in september from a year earlier. there is also uncertainty about the "fiscal cliff," as well as a recent drop in u.s. exports.. the united states has so farrecovered only 4.1 million of the 8.8 million jobs lost as a result of the18-month recession, the article reports. according to the president of thefederal reserve bank of chicago, it will take until the end of 2014 for theunemployment rate to fall to 7 percent. discussion questions: 1. what are the reasons behind thereported hesitation to hire new employees in numerous u.s. enterprises? 2. should enterprises hire new employees regardless of whether the productivityof their present work force is sufficient to meet demand? if so, why?