My last job ended on the notion that, being a skilled web developer, I would have no problem finding work in a better company, a company that would be more willing to pay me what I was told by them I deserved. I disagreed, pointing out that I had actually looked for several months for a business that would accept the skills of a web developer with no formal training and no college experience. Despite my protest, this idiocy and possibly his own personal motivation (bosses don't like it when people point out how they're completely incompetent after going to college on a subject), drowned out the facts. They wanted me gone, not for my betterment, but because their company was going downhill for mistakes they made, and it showed. There is a reason that the only two people left from when I was working there are the bosses. Everyone jumped ship because they just knew that moron was ruining "his" company.
At any rate, here's my hypotheses on why companies aren't hiring:
The Economy Sucks
A lot of smaller to medium scale businesses genuinely can't afford to take on the extra workers, but this is a rare group in all of the companies that don't hire. They spend their money where it should be going, but it's not enough. There's not enough revenue coming in to justify hiring new staff, and they tend to be victims of the problems caused by the other businesses who won't hire but can. Those businesses will be addressed below.
Excess for Me, Poverty for You
The fat cats at the top of the company frequently manage to get caught with their hand in the cookie jar, knowing their company is in financial trouble. No matter how many lives they have to destroy, the number is never enough as long as they can enjoy excess. Remember the bailouts from nearly a year ago? Remember when AIG executives went on that trip to that nice resort, while their hard-working employees had to put their offices in a box? What a great way to show how grateful you are for all that effort they put forward so you could afford the trip.
Reminds me of my last job in several ways. The guys at the top got to enjoy a "business trip" to Disney World while the office wasn't allowed to keep styrofoam cups in stock. One was able to buy himself a boat, while the other was able to buy himself a new home in an upscale neighborhood and immediately begin remodeling it. If you heard the meetings, you would never guess that anybody in the staff could get by with doing that. When hiring a new graphics designer for printed marketing, they said their ideal candidate was a "young college student" who lived at home, because a college student "has no responsibilities." Those exact words were used, and it was clear to me from those choice words they were looking for someone to do the job for a couple bucks above minimum wage. Someone without the experience to know when they're being paid less than someone with equal skill would be paid elsewhere. Kind of like myself.
Collective Stupidity
The other reason companies don't seem to be hiring is that they are economically incompetent. It doesn't matter how long they've been in business or the degree of success they've had. When they notice declining numbers in their sales, their workforce also begins to decline. One or two companies suffering this problem would not be so bad, but almost every business is doing this at the same time. I will demonstrate why this is an economically stupid practice.
Know what happens when someone loses a job? They have less money to spend. Know what happens when someone has less money to spend? They buy less stuff. Know what happens when someone buys less stuff? A company has decreased income. Know what happens when a company loses income? An employee loses their job.
Multiply this by 5 million and that's how the past year has gone.
As long as you morons are firing people and laying people off for trivial issues (or as is legal in my state, for no reason whatsoever), you are making the economy worse. You have to spend money to make money. Now there is little just one company can do, since I'm fairly certain that people who work at Burger King aren't going to be eating most of their food from Burger King, so the whole lot of you are going to have to work something out.
Fixing It... I Think
I am a libertarian, so I believe that, for the most part, business should be left alone by the oft-incompetent government, but I also believe that you should earn what you deserve based on effort and that your right to do whatever you want is only bound by another's right to do what they want. Taking oodles of cash for yourself while your company is drowning and offices are clearing out is a violation of my principles in that you are ruining people's lives.
I know this is going to sound like a socialist idea, but we're going to have to get the big-headed idiots running the companies to take a pay cut. Let's be honest here: Do you really deserve that kind of money if your company is suffering? You're going to have to take a pay cut, and probably reinvest a few million from your own pocket back into your business. Just one of you doing it may not be enough, so this country needs at least a few companies to get the ball rolling. Exercise some humility for once in your life. Hell, it might even make you more popular to and respected to potential customers and clients.