Company not hiring? Doesn't mean it is in trouble
Posted August 18, 2011 5:25 p.m. EDT
Updated August 18, 2011 5:42 p.m. EDT
Durham, N.C. — Just because a company isn't hiring doesn't mean it is struggling, a local economist said Wednesday.
"U.S. companies are sitting on over $1 trillion in cash – the highest level in 50 years. They've got the profitability. Profits this year for the S&P companies may set a record, an all-time record," said Harry Davis, a professor Appalachian State University and economist for the North Carolina Bankers Association.
Davis said economic uncertainty is driving most business decisions.
"So, they're not investing in plant and equipment, and they're not hiring workers," Davis said.
The American Institute of Certified Public Accountants is one of the Triangle companies bucking the trend. The AICPA has hired 40 new employees this year and plans to fill 50 more positions.
"We're going to make an investment in resources, and I think it's going to prove out as the next couple of years play out," said Victor Velazquez, AICPA senior vice president.
Gary James lost his previous job because of international competition. He now works at the AICPA helping to develop an international newsletter.