Europe Takes Toll on U.S. Hiring Plans

Washington, DC, Oct. 24, 2011 -- The National Association for Business Economics said that hiring expectations by U.S. companies for the next six months have fallen since July and their overall outlook is the worst since early last year.

In addition, the percentage of companies planning to raise prices was the smallest in almost two years.

The survey indicated that businesses are concerned about the European debt crisis, with 30 percent of participants anticipating it will cause a decline in sales through early 2012.

Companies also cut projections for the pace of growth and pared capital spending plans.

Twenty-nine percent of companies said they would increase hiring, down from 43 percent in July, while 59 percent reported they plan no change in staff, a 10-point jump. Twelve percent projected a decline in payrolls, up from 8 percent in the previous NABE survey.