The question of the day is “Why Aren’t Small Businesses Hiring?” Most of the answers should be obvious, but let’s take a look at a recent Gallup Poll on Hiring to confirm.
85% of those surveyed — are most likely to say the reasons they are not doing so include not needing additional employees; worries about weak business conditions, including revenues; cash flow; and the overall U.S. economy. Additionally, nearly half of small-business owners point to potential healthcare costs (48%) and government regulations (46%) as reasons. One in four are not hiring because they worry they may not be in business in 12 months.
Negative Surprises
That 76% have no need for more employees is not at all surprising. Who wants to hire in this environment?
Healthcare costs are a genuine concern. We have heard that story time and time again. That nearly half cite healthcare costs should not be surprising.
One number however, did stand out.
Edge of a Precipice
That 24% cannot and will not hire because they fear going out of business within a year says quite a lot.
Bear in mind this is in spite of the fact that “economic confidence is approaching its highest levels in the last four years. U.S. small-business owners are also about as optimistic about their business and their future hiring as they’ve been at any point during that time.”
This economy is on the edge of a precipice and few see it.
Mike “Mish” Shedlock
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