Gavekal Capital: Small Business Hiring Plans Slowdown

Tuesday, November 12, 2013

Small Business Hiring Plans Slowdown

The percentage of small businesses that are planning to increase hiring fell back 4 percentage points to 5% in October. Unfortunately, in this recovery 10% of firms planning on increasing hiring has acted as an upper bound for this series. To put this in perspective, outside of recessions, from 1994-2007, this series was only ever BELOW 10% twice. It would seem that before a more meaningful decline in the unemployment rate can happen, small business will have to start hiring more.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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