Where are the jobs?

A few years ago, I had a client who worked at a Ford plant in Sharonville. He was telling me that he had been working 6-12 hour shifts for the past few years. I asked him why the plant hadn't hired any new workers for the demand and he told me that because of the UAW contract it was cheaper to pay time and a half (or double time for the holidays/weekends) to existing employees than it was for the company to add someone to the payroll (because of the benefit packages offered to the employees).

So right now if you have a job; congratulations. You probably have some semblance of job security. You'll probably be asked to do a lot more for a lot less but you will be employed.

However, if you don't have a job, you're in a bad situation right now. Why?

Few small-business owners would hire more workers even if they had more money, according to the monthly American Solutions survey.

Almost half (46%) would put the extra money into savings and 15% would hire more workers. One in 17 would use the money to delay laying off existing employees.

This is the basic reason for the lack of job creation even though most experts think the economy is no longer in recession.

“The cautious behavior shows entrepreneurs are still very reluctant to make any large investments or outlays of new capital given the current economic environment,” says American Solutions, a group chaired by former Congressman Newt Gingrich, that is conducting jobs summits across the country including Irvine.

Chapman University economist Esmael Adibi agrees that employers are typically hesitant to hire coming out of a recession for two reasons:

• They are uncertain any revenue increase will continue
• They’re uncertain about the costs of government actions such as health care reform and tax increases.

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How about adding to the uncertainty; the impact of cap and trade on utility costs, increases in the minimum wage, etc.

Think about it. When you cannot reasonably ascertain the cost of an employee you're typically reluctant to hire extra people on.

It's a reasonable human response. Something I'm sure was proven in a psychology 101. But yet liberals who pretend to be so smart cannot seem to grasp that concept.

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