US Corporate Profits Reach Record High
But don't expect hiring to follow
By Nick McMaster,  Newser Staff
Posted Nov 23, 2010 5:13 PM CST
In this Oct. 16, 2009 file photo, a bank clerk counts U.S. 100 dollar bills near bundles of Chinese renminbi notes at a bank in Hefei, in central China's Anhui province.   (AP Photo, File)

(Newser) – Recession or no, US corporate profits hit an all-time high of $1.66 trillion in the last quarter, reports the New York Times. It's the highest figure since the government began tracking the stat more than 60 years ago, though it trails the record set in the third quarter of 2006 when adjusted for inflation, notes the Washington Post. Either way, all this profit means companies will be busting to hire people, right? Not so much.

One of the reasons profits are up is because companies have increased productivity, following the old "do more with less" mantra, explains the Times. In addition, many US companies are doing brisk business in India and China, where demand is booming in certain sectors. Booming corporate profits add to overall growth, but that remains at a mere 2.5%—"not fast enough to reduce significantly the unemployment rate or to prevent a slide into deflation,” says one economist.