This article is about a firm who originally cut 20% of their workers in 2008 due to the economic crisis. Though demand has picked up, Wendy Goldstein of the small company has said she has no plans to hire back to the same level. Companies such as hers had previously cut workers and are learning to do without all the help.
This trend is very common right now amongst smaller companies. They are becoming more efficient using the employees they have. Reasons for this is being weary about the future financial position, consumer spending, and pending government rulings. After "cutting the fat" from these smaller companies, employers have given current employees more job responsibilities and additional training.
This makes a lot of sense. Cut the fat and assign more work to your current employees. They too are fighting to get keep their jobs therefore they must keep their performance levels high otherwise they will be looking for a new job.
ReplyDeleteSince unemployment is the biggest problem right now I think that the government could and should take some action to try to fix this problem. Instead of spending on unemployment benefits which actually do not help lower the unemployment rate that money should be allocated to financing some incentive for firms to higher again. A program that would make it profitable for firms to higher workers would really help the economy.
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