Survey Reveals That Taxes and Regulations Aren’t A Threat to Future Job Creation; it’s Education Deficiency!
The 2012 CFO Outlook Spring Update reveals survey results in which over 250 financial executives were interviewed. 93% forecast growth in 2012, 64% expect revenues to rise and 51% plan to do more hiring in 2012. Notice that says, “They plan to do more hiring in 2012.”
The Webcast video reveals that apparently most of the current hiring is what Laura Whitley, head of Global Commercial Banking, Bank of America Merrill Lynch calls a “War for Talent,” with the talent being needed primarily for high-tech positions and skilled labor. Lamenting the shortage of such “talent,” CFOss on the Webcast speak of deficiencies in America’s education system and the need for more focus at younger ages on Vocational schooling options. “Not everybody has to go to college,” stated Mike Beck CFO of Choice Logistics.
Of course it’s no surprise that 57% of CFOs say they will be raising prices on their products and services this year, but what is surprising is that New Taxes and Regulations didn’t make the Leading Corporate Financial Concerns list:
Oil Prices – (65%)
Government Leader Effectiveness – (63%)
U.S. budget deficit (54%)
Healthcare costs (51%)
The CFO Outlook Report is a kind of barometer of America’s financial health. More than 9 out of ten CFOs surveyed see growth ahead for their companies. While it is undoubtedly a convoluted and complex issue, it is important to note that the GOP has been unswervingly committed to ensuring that big business and banks have no new regulations or taxes. They have consistently warned that doing so would cause these entities to stop hiring.
Come to find out, what has been holding back big business from hiring had nothing to do with new legislation or taxes. It has much to do with sending jobs overseas (as well as the recent recession). According to the survey, new taxes and regulations are not a current concern for big business, and they have stated that they plan to hire this year. Only there’s a small glitch: they can’t find skilled and high-tech American workers to hire.
According to the Webcast CFO’s there has been talk of bringing the automotive and tool & dye industries back to America, but they can’t because there are no longer enough workers here in America possessing the necessary skills. Why? Because those jobs were taken from Americans and the need for those skills disappeared.
Now big business is blaming the government and the educational system for not providing schooling for these needed skills!
Why are billionaire-funded Congressional reps continuing to say businesses will stop hiring if we regulate them more or increase their taxes? It simply isn’t true and this survey and the ensuing conversation prove it.
Big business isn’t concerned about increased taxes and legislation; they aren’t hiring because they can’t find people who possess the necessary skills. Obviously vocational-type education is needed if these jobs are going to return to America, however, trusting Corporations to follow through after these students graduate and are ready for a job is a risky proposition. Once there are skilled labor workers to fulfill the positions, will corporations bring the jobs back? Or will they find another justification for not hiring while the GOP continues to yell about no new regulations and taxes for corporations?
When the President said, “The private sector is doing fine,” he was right. Contrasted to jobs being lost in the public sector, via diminished federal support to state and local governments, the private sector is growing and optimistic as the preceding report revealed.