Need more proof that the so-called recovery is a fraud? Here it is, courtesy of a post at the Wall Street Journal's Real Time Economics blog, in a post entitled "CFOs: Revenue Surge Needed to Boost Hiring":
Despite double-digit gains in corporate earnings over the past six quarters, it would take much stronger-than-expected revenue growth for businesses to be comfortable adding employees, according to a new survey.
Chief financial officers at large North American companies polled by Deloitte LLP said it would take a 20% surge in revenue before they felt comfortable adding to their payrolls.
The quarterly survey released Thursday found that nearly half of respondents would seriously consider adding employees if revenues rose 20%, but few would be moved by a 5% increase. A 10% bump in revenue would only be a major hiring consideration for 11% of CFOs.
Worse yet, perhaps, actual growth isn’t expected to reach such heights: respondents estimate top line growth at North American companies will be just 8.2% this year. (This is, however, a rosier picture than the fourth quarter when respondents forecast 6.5% for the coming year.)
“There’s a huge delta around what CFOs are expecting it to take for hiring to come back and what actual growth is,” said Sanford Cockrell III, national managing partner of Deloitte’s CFO Program.
In my view, the news also proves a few other things: many of our leaders are incompetent or liars, tabloid astrologers have more forecasting ability than most equity traders, and corporate America is oblivious to the pain that their greed, selfishness, and short-sightedness will soon bring their way.