SageWorks conducted an interesting survey on corporate hiring plans of private businesses in March and again recently.
Let's start with a look at results from the June 25 to July 16 survey, collecting responses from 300 accountants.
Sageworks surveyed 300 accounting professionals who work closely with [privately held] firms and found that 66 percent expect the new health care changes will make it less likely that businesses will add new employees in the next year. Sixteen percent said it would have “no impact,” and 14 percent of respondents said they were “unsure” about the ultimate impact. Only 2 percent said the Act makes it “more likely” that businesses will add new employees.
Impact of Obamacare on Hiring Plans
“Private companies are performing well, but they’re simply not hiring with the same volume and consistency that we’d expect from them at this point in the economic recovery,” noted Sageworks Chairman Brian Hamilton. He continued, “The recent delay in the implementation of the Affordable Care Act, and the uncertainty that accompanies such a delay, won’t help the employment situation. Private businesses are trying to map out their hiring and investment plans for the next twelve months, and a last minute delay like this will increase the likelihood that companies remain on the fence about hiring.”
Businesses More Pessimistic than in March
Let's Compare the Current Survey to March
March vs. July
- In March, 20.29% of privately held companies expected to increase employees.
- By July, only 13% expected to increase employees
- In March, only 6.52% of privately held companies expected to reduce employees.
- By July, 12% privately held companies expected to reduce employees.
These survey results are not unexpected (by Mish readers), but the results likely are unexpected by economists and mainstream media writers.
Mike "Mish" Shedlock