LI businesses weigh in on local jobs market

Even though many companies are reluctant to hire, enough added to Long Island payrolls in June to give the local economy a small boost. Long Island had 5,400 more jobs that month, the latest for which data is available, than it did in June 2009.

Still, from small businesses to corporate giants, a sour economy and slow sales continue to stunt strong job growth. Here are some reasons they cite for the caution.

Robert Basso

Advantage Payroll Services, Freeport

Basso says clients of his company, which has 2,000 small to mid-size customers, are reluctant to hire for three key reasons: a lack of business because of the economy, costs associated with the MTA payroll tax and the state's budget crisis.

"It's a culmination of all these things happening at the same time," he said.

A client who owns a limousine company won't think of hiring until his larger corporate customers step up their spending, Basso said. A client in the fence installation business isn't hiring either, as his sales halved to $10 million in the past 18 months because of the severe downturn in the housing and construction industries.

Whereas last year at this time obtaining financing was a top concern of small businesses as banks tightened their lending restrictions, this year is different.

"Who's going to borrow if they don't have the orders they need to fill?" Basso said.

Todd Kirschner

Trio Hardware & Paint, Plainview

Kirschner, the store's manager, said he would like to hire two salespeople to add to a staff of six full-time workers. But he is reluctant because sales so far this year are about 5 percent below last year's. And this summer season, the store has sold fewer lawn chairs and beach umbrellas than it typically does, Kirschner said. That followed slower demand for paint products in the spring and early summer season because of the economy and unusually hot weather.

"People are still scared to spend money," he said.

August may not be much better because the hardware business typically slows as consumers focus on back-to-school purchases, he said.

The severity of the economic downturn means small business have a long way to go to get back to healthy sales, he said. Even rosier sales numbers, he added, don't mean much when compared with revenue from 2009, when the economy was in a tailspin.

"If you're up 5 percent after being down 15 percent [in 2009], you're still not up anywhere," he said.

Arrow Electronics, Melville

In some cases, decisions about local hiring turn on global factors. Arrow Electronics, which has 11,300 employees worldwide, including 550 on Long Island, said it is dealing with a world economy that continues to be challenging, so it is cautious on hiring.

"We're taking a measured approach to hiring that aligns to the needs of the business and the global economic environment," said a spokesman for the electronic-parts distributor.

Some recent company financial reports signal that national and international economic growth could slow again.

Weaker-than-expected sales at computer companies Cisco Systems and IBM may indicate a slowdown in corporate spending, which has led the U.S. recovery, Bloomberg News reported Thursday.

Corporate spending is among the few remaining sources of economic growth, as federal stimulus money wanes, Bloomberg said.