By Debbie Cai
In view of the upcoming fiscal cliff, employers might further
delay major hiring decisions until there is more clarity around the
country's economic future, according to consulting firm Challenger
Gray & Christmas Inc.
"Uncertainty alone is not the driving factor behind delayed
hiring," said Chief Executive John A. Challenger. "Hiring is driven
primarily by demand and, right now, demand is in fact being
negatively impacted by uncertainty."
He also said that businesses are postponing equipment and
technology upgrades, the government has almost halted spending, and
consumers are holding off on large purchases, albeit because they
can't get needed credit.
Even if lawmakers reach a compromise on the fiscal cliff, he
said, the financial crisis in Europe and the Asian economic
slowdown continue to obstruct U.S. economic recovery.
Separately, some retailers including Wal-Mart Stores Inc. (WMT)
and Toys 'R' Us Inc., are planning to kick off sales as early as 8
p.m. on Thanksgiving Day in advance of Black Friday.
Challenger noted that more major retailers have adopted the
controversial, but lucrative, strategy of opening at midnight on
Black Friday. The move has led to many online petitions against the
practice. Some retail staff and consumers are unhappy about having
to spend the holiday working instead of being with family and
friends.
Mr. Challenger questions the impact on employee morale of
opening earlier on Thanksgiving, and the possibility of more
opportunities for holiday job seekers.
Last week, Challenger noted that the impact of Hurricane Sandy
on retail hiring on the East Coast remains to be seen. It said
these were highly populated areas that were affected and that there
is a good chance that many people in the region will still be
trying to rebuild their lives when the peak holiday shopping season
starts in a few weeks.
Write to Debbie Cai at debbie.cai@dowjones.com
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