Firms employ less as profits soar

Profit margins of many quoted companies have gone up in spite of the economic crunch for staff retrenchment.
An investigation conducted by The Republic on the audited accounts of most quoted companies at the stock exchange revealed that the profit after tax of these companies over time (1980 – 86) indicate a considerable increase when compared to what they earned between 1975-1980. In most cases, the profit margin showed a better performance during the period of that things were supposed to be difficult for the companies.
The banking sector for instance has witnessed increased profitability and has been growing steadily over the past six years. This is equally true for the brewery, the conglomerates, soap and toiletries and the motor and tyre sectors.
What however surprised economic watchers is that despite this growth the profit most of these companies have not provided employment commensurate with their profits rather retrenchments still rules the day