With the economic recovery creeping along at below a full percentage point for the year of 2012, corporations, especially large multinationals, are enjoying some of the largest profit margins seen in over 50 years. A large part of this capital growth is due to the increased productivity that companies are seeing across the board from their employees.
Unfortunately for their employees, these companies aren’t feeling the need to dip into their profits to give out raises or hire more staff to lessen the work load. According to today’s source article from The New York Times, even less can be expected for the little guy in the coming months. Over 85 billion in budget cuts are taking place in the US government and over 700,000 government jobs projected to be lost.
The cuts will have a minimal effect on the multinationals I’ve been talking about, at most 1 percent of revenue, but for job seekers everywhere these cuts keep the job market in the same stagnant, frustrating position. To read the full article from the New York Times, follow the link below.