Read this report on why businesses are not hiring. It makes alot of sense. A key reason is that output has remained the same despite a reduced workforce. In additon, that output has remained the same is direct evidence that demand has stagnated or been reduced and that is another key reason why employers are not hiring.

http://money.cnn.com/2010/12/03/news/economy/employers_doing_more_with_less/index.htm?hpt=T2