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Survey: Firms Optimistic on Hiring, Wages in 1Q

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In this Oct. 21, 2014 file photo, a shopper walks across a floor displaying fashion brands and restaurants' names at a shopping mall in Beijing, China. This holiday season, some companies are hoping to make it as simple to shop on the other side of the world as it is to buy from a store down the block. (AP Photo/Andy Wong, File)

(AP Photo/Andy Wong, File)

 
WASHINGTON (AP) — Rising sales helped boost hiring at U.S. businesses in the last three months of 2014, and companies are optimistic that continued improvement in business conditions will bring increased employment and wages in the current quarter, a new survey shows.

And many businesses expect the steep drop in oil prices in recent months to have a positive impact on them this year, according to the survey released Monday by the National Association for Business Economics.

Fifty-four percent of the 93 respondents to the quarterly survey said sales at their companies increased in the October-December period. That was up from 49 percent in the third quarter. As sales picked up, so did hiring. Thirty-four percent of companies responding said they hired more workers during the fourth quarter, about the same as in the second and third quarters.

Businesses said the outlook for the January-March period is strong. Fifty-one percent of respondents said they expect wages and salaries to increase at their companies — up sharply from 34 percent in the fourth-quarter survey. Thirty-six percent said they expect their companies to hire more workers, up from 31 percent previously.

Finance, insurance and real estate companies were most likely to say they expect employment increases, at 52 percent; transportation, utilities and communications firms were the least likely, at 15 percent. Only 7 percent of respondents expect employment declines at their companies in the first quarter.

“Business conditions continued to improve in the fourth quarter of 2014,” NABE President John Silvia, the chief economist for Wells Fargo Securities, said in a statement. “There are strong expectations for the first quarter, especially for jobs and wages. … Moreover, price and cost pressures appear to be subdued.”

There was a sharp decline in the number of companies reporting they raised prices in the October-December period, to 16 percent from 25 percent in both the second and third quarters. Higher prices were reported most frequently by respondents from the transportation, utilities and communications sector, at 25 percent. Nearly two-thirds of respondents — 65 percent — expect no change in the prices their companies will charge in the first quarter, close to 66 percent in the fourth-quarter survey.

The drop in oil prices was the financial shocker of 2014. In the first half of the year, the oil market looked just as it had the year before — and the two years before that. Crude oil was more than $100 a barrel and drivers in the U.S. were paying around $3.50 a gallon for gasoline. Now oil is around $45 a barrel and the average gas price is $2.07 a gallon.

Fifty-seven percent of respondents in the NABE survey indicated that tumbling oil prices would be positive to some extent for their businesses this year, while only 18 percent said they could have a negative impact. The decline is expected to benefit the manufacturing sector to a larger extent than others.

The survey, in this case conducted between Dec. 15 and Jan. 8, is intended to gauge business conditions at NABE members’ companies or industries. Forty-three percent of the respondents were from companies with more than 1,000 employees.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Oakland Post: Week of May 28 – June 30, 2025

The printed Weekly Edition of the Oakland Post: Week of May 28 – June 3, 2025

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Oakland Post: Week of May 21 – 27, 2025

The printed Weekly Edition of the Oakland Post: Week of May 21 – 27, 2025

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OPINION: Your Voice and Vote Impact the Quality of Your Health Care

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare. 

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Rhonda M. Smith.
Rhonda M. Smith.

By Rhonda M. Smith, Special to California Black Media Partners

Shortly after last year’s election, I hopped into a Lyft and struck up a conversation with the driver. As we talked, the topic inevitably turned to politics. He confidently told me that he didn’t vote — not because he supported Donald Trump, but because he didn’t like Kamala Harris’ résumé. When I asked what exactly he didn’t like, he couldn’t specifically articulate his dislike or point to anything specific. In his words, he “just didn’t like her résumé.”

That moment really hit hard for me. As a Black woman, I’ve lived through enough election cycles to recognize how often uncertainty, misinformation, or political apathy keep people from voting, especially Black voters whose voices are historically left out of the conversation and whose health, economic security, and opportunities are directly impacted by the individual elected to office, and the legislative branches and political parties that push forth their agenda.

That conversation with the Lyft driver reflects a troubling surge in fear-driven politics across our country. We’ve seen White House executive orders gut federal programs meant to help our most vulnerable populations and policies that systematically exclude or harm Black and underserved communities.

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare.

Medicaid, called Medi-Cal in California, doesn’t just cover care. It protects individuals and families from medical debt, keeps rural hospitals open, creates jobs, and helps our communities thrive. Simply put; Medicaid is a lifeline for 1 in 5 Black Americans. For many, it’s the only thing standing between them and a medical emergency they can’t afford, especially with the skyrocketing costs of health care. The proposed cuts mean up to 7.2 million Black Americans could lose their healthcare coverage, making it harder for them to receive timely, life-saving care. Cuts to Medicaid would also result in fewer prenatal visits, delayed cancer screenings, unfilled prescriptions, and closures of community clinics. When healthcare is inaccessible or unaffordable, it doesn’t just harm individuals, it weakens entire communities and widens inequities.

The reality is Black Americans already face disproportionately higher rates of poorer health outcomes. Our life expectancy is nearly five years shorter in comparison to White Americans. Black pregnant people are 3.6 times more likely to die during pregnancy or postpartum than their white counterparts.

These policies don’t happen in a vacuum. They are determined by who holds power and who shows up to vote. Showing up amplifies our voices. Taking action and exercising our right to vote is how we express our power.

I urge you to start today. Call your representatives, on both sides of the aisle, and demand they protect Medicaid (Medi-Cal), the Affordable Care Act (Covered CA), and access to food assistance programs, maternal health resources, mental health services, and protect our basic freedoms and human rights. Stay informed, talk to your neighbors and register to vote.

About the Author

Rhonda M. Smith is the Executive Director of the California Black Health Network, a statewide nonprofit dedicated to advancing health equity for all Black Californians.

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