Economy Recovering, However, No New Jobs; No Spending For Companies Says CEOs

In a survey by Business Roundtable, as reported by, CEOs are saying they are planning more job cuts in the coming months. The CEOs surveyed said 40% would be cutting jobs while only 13% will be hiring new workers. The survey also said the CEOs were less optimistic about spending as well. However, over half of the CEOs were reported as saying they believe their companies will see a rise in profit in the next six months because the economy will be well on its way to full recovery by then.

The CEOs were expected to see an increase in profits and sales yet they are still cautious about hiring or spending. This lack of job creation and spending despite positive outlooks is the result of caution as well as worry over not generating as much profit as they could. If CEOs began hiring and the economy did remain on the upswing, they feel the injury sustained in the recession affects them still and by opening new jobs it would slow profit increase and growth.

With the economy recovering, yet no new jobs created and CEOs erring on the side of caution, it is looking like prolonged hardships for the unemployed. If a company begins to make profits with minimal staff and CEOs wish to remain overly cautious it seems the break in the clouds for the economy could still mean rainy days for the job market.

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