Saturday, July 7, 2012

Small businesses are faltering on job creation


Los Angeles Times / LATimes.com ^ | July 7, 2012 | By Ryan Faughnder and Shan Li, 

Behind the weak job growth numbers and the uncertainty about the economic recovery, small-business owners see shrinking consumer confidence sapping demand for their products and services.
Many small firms say they are barely staying afloat and won't hire until they see signs of more stability in the marketplace. That sentiment doesn't bode well for efforts to push the economy forward.
Small business, the conventional engine of job growth, has been particularly active in the last two years in driving the recovery from the Great Recession. But it may not be able to sustain its efforts.
"There is no reason for small businesses to do well in this environment," said Chris Christopher, senior principal economist at IHS Global Insight. "Most of the employment growth you see coming out of a recession is coming from small businesses, but employment growth is anemic and the reason is small businesses not hiring."
(Excerpt) Read more at latimes.com ...

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