45% of American Small Businesses Have Stopped Hiring as Inflation and Labor Costs Rise
Jose Nino
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Roughly 45% of small-business owners in the United States are pausing the hiring of new workers due to rising inflation and ballooning labor costs, per a report by Alignable.
Bryan Jung of The Epoch Times noted that a similar survey, that was carried out from late June up until the middle of July, found similar results after surveying 4,739 small-business owners. Jung observed that this small business hiring slowdown comes at a time when 51% of small businesses are still attempting to find workers to bring onboard.
The Alignable report was published on July 21, which came after the latest release of the US Bureau of Labor Statistics (BLS) data. These new figures from the BLS showed consumer prices increasing by 9.1% over the past year, which are the highest numbers in over 40 years.
“This represents a significant hiring shift, and is largely a reaction to mounting labor costs, skyrocketing inflation, fears of a recession, and rising interest rates,” the Alignable report highlighted.
According to the survey, 4% of small businesses had plans of downsizing staff. In a similar vein, the report found that “some employers noted that they’ve learned to live without the extra staff, making other changes and/or working longer hours themselves.”
The degree of hiring freezes varies from industries and states. So far, 66% of gym owners, 63% of real estate firms, 38% of restaurants, 58% of transportation companies, 55% of automakers, and 55% of retailers have reported hiring freezes.
“The top 5 states most affected by the hiring slowdown are NJ (64%), FL (63%), TX (52%), VA (52%), and CA (49%),” Alignable outlined. “From 3% to 14% of all SMB [small-business] owners in these states say they’ll be forced to lay off staff, as well.”
Similarly, small business owners in Pennsylvania (48%), Ohio (47%), New York (41%), Massachusetts (39%), and Coloradan (33%) have reported making hiring freezes.
Just 26% of all small businesses have indicated that they’ve experienced a complete recovery back to pre-pandemic revenue levels. Furthermore, 60% of small businesses surveyed said that their labor costs had surged.
Roughly 18% of small businesses conceded that wages were 25% higher than they were prior to 2020.
In another survey, at least 48% of small business owners believed that the US economy is already in a recession. An additional 32% believe that a recession would strike later in 2022.
Small businesses are the lifeblood of the American economy, and when they’re hurting, nothing but bad things ensue.
Governments’ responses to the Wuhan virus worldwide have resulted in the largest corporate consolidation in recent decades. This pandemic has been a god-send for globalists who desire more control and consolidation.
But for Middle America, the emergence of this biosecurity state is a nightmare of epic proportions. Right-wing populists must properly address this situation by completely ending lockdowns, slashing the majority of the regulatory state, and making a move towards sound money.
These are the only reforms that will save America’s small business sector and allow America’s economy to perform at its maximum potential.
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