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The ‘Fiscal Cliff’ and Other Reasons Companies Aren’t Hiring More Workers

NBC News (12/03/12) Allison Linn

Although the job market has shown signs of improvement, experts say there are several reasons that employers have not increased hiring. Companies are worried about higher taxes if a deal is not struck to avoid the “fiscal cliff,” which could significantly slow the economy. Businesses also feel little pressure to hire more workers, especially since they can wring more work out of existing employees without boosting their incomes and increase productivity through new technologies. Additionally, employers have shifted their business strategies to focus less on expansion, and they are less likely to take a risk on new products, markets, or industries that would require them to add more staff.