Well, they would wouldn’t they? The way companies have cut back on staff to return to profitability has surprised hordes of US pundits. They should read some Karl Marx:
Profits at a price
Profits may be above recessionary levels, but sales turnover isn’t. What companies have done is squeezed more out of their remaining workers, by increasing hours worked and overtime, as well as by using technology and other methods to boost productivity.
It’s why US productivity has been seeing record gains. Firms will only begin hiring as a last resort – even in hyper-flexible US economy – when they fear they are losing sales and/or market share by being understaffed.
(Source: Business Insider)
