Why the Economy Will Rebound Faster Than Employment

I have seen it happen over and over again.of America are still wounded from having to let people
Entrepreneurs and business owners hire people andgo during the recession.
then they grow to like them. They build a culture ofWhere a few years ago it was common to see
family and they genuinely feel a sense of pride in andentrepreneurs hire a new person at even the prospect
responsibility for providing employment and security forof the need, these same entrepreneurs, still bruised
so many families.from some tough times, are much more hesitant to pull
Then, when times get tough, they struggle to let peoplethe trigger on new hires. Phrases like: "Let's hold off on
go because of this same sense of pride andhiring until we are absolutely certain we need another
responsibility. These same entrepreneurs don't hesitateperson," and "I'm fine to authorize overtime until we can
to sell equipment, downsize their office, or cut otherreally justify adding to the staff," have become the
non-human expenses. So why can't they just look atnew norm.
their employees as an asset or a piece of equipmentEven though the Business Outlook Survey is predicting
to sell or dispose of when they need to lean-up theirdouble-digit rates of growth in both earnings and capital
operations?spending over the next 12 months, it is also predicting
I know, this question sounds silly. Obviously we don'tmuch slower employment growth. When asked why
build much of a real relationship with a piece ofemployment would lag behind other positive trends,
equipment, and we don't personally know of a wifetwo of the top three responses highlighted the reliance
and five kids that the piece of equipment is trying toon:
support. So, what does this have to do with our- 44% plan to increase productivity per employee
ongoing high levels of unemployment in this country?- 37% will increase production efficiency
We have all heard the statistic from the SBA that thatEntrepreneurs are simply asking for more from their
just over half of private employees are employed bycurrent employees and looking to technology and
small businesses. And I would argue that the smallautomation to grow. They learned their lesson and, as
businesses are those that have more of a tendencya result, are accelerating our economy's change to a
to view their employees as real people and realmore efficient playing field, relying on people to add
families - in fact, sometimes a good portion of theirhigh-level value than fulfill lower-level tasks. So, as the
employees are family members. In this context, I submiteconomy rebounds, it only makes sense that
that owners and executives of the small businessesemployment will lag behind.