Tags: machines | man | humans | companies | hiring

WSJ: In Man vs. Machine, Machines Get More Work

Thursday, 29 Sep 2011 09:25 AM

It's man-versus-machine out there these days, at least when it comes to landing work. The machines, it appears, are winning.

Since the Great Recession ended, businesses have increased their spending on equipment and software by a 26 percent in real terms, while they've added almost nothing to their payrolls, The Wall Street Journal reports.

"You can't fault companies for investing in new machinery rather than hiring new workers. As two news reports detail, labor costs are rising, a function of both private and public pressures," the Journal reports.
__________________________________________________________

Inside the World’s Greatest Retirement Lie

Study reveals disturbing truth: Millions have been victimized by the very people they elected. Learn the Truth, See the Details. 
__________________________________________________________

New hires mean fresh hikes in health insurance costs — The Kaiser Family Foundation reports a 9 percent average increase in the premiums paid by employers this year.

"The average yearly cost to cover a family hit a record $15,073, up sharply from $13,770 in 2010," the Journal adds.

Furthermore, states are raising taxes on companies to replenish unemployment benefits coffers, which cuts into hiring capacity, the Journal adds.

obama200getty.jpg
President Barack Obama
(Getty Images photo)
To get more humans back to work, President Barack Obama has unveiled a $447 billion jobs package — a mix of payroll tax cuts, infrastructure development and other measures.

Critics say the bill comes hand in hand with tax hikes elsewhere, while supporters say it's better than nothing and may keep the country from dipping back into recession.

"The important thing to consider is: What happens if we don't do anything?” says Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Florida, according to Bloomberg. The program "very well could" forestall a recession in early 2012.

"Most of all, it prevents a serious drag on the economy next year" from current programs expiring, Brown says, estimating the plan would add 0.5 percent to GDP in 2012.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
It's man-versus-machine out there these days, at least when it comes to landing work. The machines, it appears, are winning. Since the Great Recession ended, businesses have increased their spending on equipment and software by a 26 percent in real terms, while they've...
machines,man,humans,companies,hiring
321
2011-25-29
Thursday, 29 Sep 2011 09:25 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved