A small company that hires full time employees takes on huge risks that have grown exponentially under Obama and his reign of incompetence.
First, the employee may have exaggerated their capabilities and will be replaced. these people cost a lot as they actually take productive hours from current employees.
Second, there is no sign of what the hell is going to break lose with the HellCare bill. Clearly, insurance costs will go up. The question is 25% or 65%.
Third, labor laws in kalifornia are just slightly to the right of france's. That makes it very expensive to get bad employees of the payroll.
Fourth, unemployment insurance is going through the roof. Every time they extend those benifitss for the unemployed, it has to come from somewhere. In this case it is 50-200% increases in unemployment insurance.
Fifth, Workers comp rates are on almost a straight up trajectory. Even with no accidents, high teck manufacturing, WC can reach 50%. I have a friend that owned a tree service. His WC payments were 105% of workers pay.
Sixth, Obama wants more anti-business labor laws. Business sees this and does not want to gamble on what these will be.
Seventh, GDP growth is at or below rising population. That is not a very optimistic figure. No business owner is thinking of expanding with basically NO GROWTH.
Eighth, there are no orders and there are no RFQ/RFPs. There will be none until Obama is out.