Why businesses are still furiously hiring even as a downturn looms

Should companies be hiring or firing? Demand for workers has roared back over the past two years so many firms need to hire. Yet at the same time fears of recession are widespread. Across industries firms are scrambling to find the right response—and coming up with different answers. Last week Snap, a social media firm, said it would fire a fifth of its workforce and noted the “difficult macro backdrop”. Mark Zuckerberg is reported to have told employees at Facebook that “there are probably a bunch of people who shouldn’t be here,” but has not announced big layoffs. Tim Cook, the boss of Apple, takes the middle course. Apple will continue to hire “in areas”, he said recently, but he was “clear-eyed” about the risks to the economy.

For now the hirers are trumping the firers. Figures released on September 2nd show that American employers, excluding farms, added 315,000 workers to payrolls in August. The Jobs Openings and Labour Turnover Survey (jolts), released a…

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This article was written by and originally published on www.economist.com