- September 2012: Vol. 24 No. 8

To read this full article you need to be subscribed to Institutional Real Estate Americas

Hiring Strike: The Underlying Reason Corporations Are Not Creating More Jobs in America and Occupying More Office Space

by Christopher Macke

We normally associate strikes with striking employees. However, Larry Kudlow of MSNBC has correctly pointed out that it is corporations that are presently on strike, a capital strike. What some may not realize is that a capital strike also can include a hiring strike, which is what is going on today. Yes, it is true that corporations have been hiring but the rate of hiring is nowhere near proportional to the recovery in retail sales, GDP or corporate profits.

As of April 2012, corporations were still employing 4.5 million fewer employees than the most recent cycle’s employment peak. This is puzzling as GDP and personal consumption expenditures have fully recovered and even surpassed their pre-recession levels. Americans are producing more than before the recession, even on an inflation-adjusted basis, and yet employment remains 4.5 million below its pre-recession peak. Continuing, in what would normally be a very positive sign for future hiring, corporate profits were at re

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy