Do you really think we’re in a recovery with headlines like this (from Business Insider):
“Nokia beat estimates on profit, announced plans to lay off 1,800 employees.”
How can we possibly be in an economic recovery when jobs are still being lost? I’ve been watching earnings reports for the last couple of quarters, and by and large they’ve been pretty good. Normally, after a recession, that’s sign for optimism.
However, what I’m seeing more often than not is that the earnings are increasing not because of increased sales but because of decreased costs. Where are those cost reductions often coming from?
That’s right, labor costs.
It’s great that companies are making money, but if job losses are still occurring, eventually people won’t be able to buy their products because of, you know, having lost their job and all.
Until the headline above start turning into:
“Company Such and Such beats estimates on profits and announces plans to hire 1,800 workers”
I’m going to continue being skeptical that we’re in an actual economic recovery.