Business Hiring In The US Faces The Biggest Downfall In 7 Years

Business Hiring In The US Faces The Biggest Downfall In 7 Years

A business survey has found that hiring in the USA has fallen to its lowest as compare to the last 7 years. Only a handful of employers has raised the salary of their employees, said, economists. According to the National Association of Business economists, only one-third of the companies have employed additional workers in the last three months. This figure is almost one third less than July’s statistics. The number of vacancies remained unchanged in 69 percent of companies. The business survey has stated that Job gains have fallen to its lowest level since October 2012. This is a major concern for employment growth in the United States.

Several industries and business corporations have faced severe loss of growth in sales and profits, which has resulted in a huge slowdown in hiring.  Several firms are facing the wrath of increased tariffs and cuts into sales. This can significantly slow down economic growth. Owing to the weakening economy, business firms are hesitant to offer higher pay to their employees.  The unemployment level has also gone to a 50 year low this time. Companies have tightened their hands towards the investment in machinery, computer, and other equipment. The Survey observed that the number of firms spending well on their machinery and other equipment has also slipped to its lowest point in five years.

Only 39 percent of companies have reported a growth in sales in the last three months, which was 61 percent a year ago. Only 38 percent of companies are expecting a rise in their sales growth in the forthcoming three months. Business economists have blamed Donald Trump’s plan to increase tariff on goods exported from china for worsening the economic conditions. Thirty-nine percent of firms have stated that tariff had impacted their growth. The increased tariff has affected the sales growth of the majority of the companies and it increased the cost of the goods. The US economy has added ninety thousand new nonfarm jobs this month according to the survey by Refinitiv. This figure is far lesser than September’s tally where 136 thousand new jobs were added. This marks the lowest growth since the addition of 60 thousand payrolls in May. The forecast shows that the economy is likely to grow only 1.1 percent to 2 percent from the third quarter of 2019 to the third quarter of 2020.

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