Analysts Say Employers Have Little Need to Hire

PHILADELPHIA-Locally-based economic analysts were not surprised by the U.S. Labor Department's weak jobs report released on Friday that reported gains of just 88,000 jobs nationwide for the month of March.

John Baliotti of Janney Capital Markets based in Philadelphia says that the economy is facing higher labor costs, slow factory orders and slow durable goods demand that are giving employers little cause to hire new workers.

Higher Social Security payroll taxes, a drop in government war spending, and the across-the-board federal "sequester" program cuts threaten consumer spending, James M. Meyer, chief investment officer at Tower Bridge Advisors writes in a report to clients of brokerage Boenning & Scattergood. In addition, Meyer states small businesses are trying to keep their employee counts under 50 workers in order to avoid paying medical benefits under next year's “Obamacare” regulations, according to a report in the Inquirer.

On Thursday, Pittsburgh-based PNC Financial Services Group noted that its new survey of small and midsized business owners revealed most "plan to delay hiring new employees" or put off borrowing capital to expand their operations. See story in the Inquirer.