The adage about a rising tide lifting all boats doesn’t seem to apply to media and entertainment. Only 21% of 61 industry execs surveyed in March said they expect to create jobs or hire talent in the next 12 months — “down significantly” from a year ago when 44% planned to do so – advisory firm Ernst & Young says today in its latest Capital Confidence Barometer. Even worse, 21% now say that they plan to “reduce workforce numbers,” up from 13% last year.
That might make sense if they were pessimistic about the economy. But the survey shows just the opposite: 64% say the global economy is improving, up from 59% last year. What’s more, they’re confident about their ability to secure credit (52% vs 36% last year) and the short term stability of the market (43% vs 39%) — and there’s virtually no change in their optimism about corporate earnings (57% vs 58%) and equity valuations (50% vs 49%).