If Democrats and Republicans can’t hammer out a budget deal by New Year’s Eve, the next day will bring across the board spending cuts and tax increases. John Challenger is CEO of global outplacement firm Challenger, Gray & Christmas.
“Employers can only act on the evidence in front of them. Most feel that the economy is going to go into recession in 2013 if the Senate and Congress don’t get together and deal with this fiscal cliff.”
But Challenger says fear of going over the fiscal cliff isn’t the only thing holding back hiring.
“Companies are concerned about the slow growth in the economy. GDP is only growing at 2%. They’re still having trouble getting loans from banks to finance future expansion.”
The Houston Metro Area added just shy of 96,000 net new jobs in the twelve months ending in October. Challenger says businesses aren’t likely to ramp up hiring nationwide until customers start buying more.