Companies Raking in Cash —Hoarding, Not Hiring

Chamber of Commerce blames Obama administration
By Kevin Spak,  Newser Staff
Posted Jul 15, 2010 9:00 AM CDT
Companies Raking in Cash —Hoarding, Not Hiring
In this photograph taken May 27, 2010, a job seeker waits to speak with an employment representative at a Work Force center in Fremont, Calif.   (AP Photo/Paul Sakuma)

(Newser) – US corporations have been reporting impressive earnings, and piling up loads of cash—but they’re not actually spending that cash to hire anyone. Nonfinancial companies have about $1.8 trillion in cash on hand, which is roughly 25% more than at the start of the recession, the Washington Post reports. So why aren’t they hiring? The US Chamber of Commerce held a jobs summit yesterday, in which it blamed the Obama administration.

The White House thinks companies are waiting for consumer demand to return before hiring. But the Chamber accused new regulations of creating uncertainty and discouraging hiring. To ratchet up the acrimony, they refused to give Valerie Jarrett a speaking slot at the event. “We have different roles,” Jarrett said of the conflict. “Our job is to both protect the American people and foster a climate where companies can invest and create jobs. Their role is to produce profits for their shareholders.” (Read more jobs stories.)

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