Small Business Hiring Drops as Economic Optimism Fades
Small businesses put the brakes on new hires as optimism about the economy falls to an all-time low.Payroll service provider SurePayroll's small business owner sentiment report plummeted to an all-time low, as only 33 percent of business owners report feeling optimistic about the small business economy. That is down significantly from June, when 67 percent reported being optimistic, as well as last month, when 48 percent suggested they were optimistic. The company's Optimism Survey also found that small business owners' confidence in the government's ability to stimulate the economy remains low, despite the recent jobs proposal from the White House. The September results for SurePayroll's monthly Small Business Scorecard, which includes hiring and wage data for the top 35 U.S. metropolitan statistical areas, showed that on a national level there continues to be flat or decreased hiring for the 12th month in a row, totaling a year-to-date decline in hiring of 2.7 percent. Wages remain down slightly (0.4 percent) for the year.
The survey also found 20 percent were more optimistic after President Obama's speech in early September, while 40 percent were more pessimistic, and 30 percent felt the president's proposal would increase jobs, while 70 percent felt it would do nothing or decrease jobs. Only 10 percent of those surveyed indicated they might hire if the plan is enacted as defined.