Another reminder of why companies aren't hiring like they used to

The economy simply does not function the way it used to - and it's not only because of the still-massive debt problem or dysfunctional politics. What continues to be left out of the debate, especially by the media, is the role of technology in allowing companies to do more (sometimes a lot more) with less. And what better place to keep labor costs down is a start-up business? From the WSJ:

Rather than purchasing the tools and manpower needed to run their companies, more small firms are renting, sharing or outsourcing resources, typically through online services, according to Steve King, a partner at Emergent Research, a research and consulting firm for small businesses. By tapping into Web-based business tools, Sam Rogoway earlier this month launched Near Networks, a nationwide video production firm, with only four employees. An entrepreneur based in Santa Monica, Calif., Mr. Rogoway says tasks that used to require extra workers can now be done online. "You don't need an IT person or an accountant. It's become so streamlined and user-friendly," Mr. Rogoway says. "We all wore different hats and collaborated on everything."

Outside of an occasional Federal Reserve research paper (and you know how much coverage they receive), very little is made of how technology has prevented job creation - and for motives no more complicated than saving a few dollars. Much easier to blame politicians or Wall Street than to examine the broader explanations for the hiring lull, not to mention the ways in which it can be dealt with.