Small businesses are traditionally the first to start hiring during an economic recovery, but that doesn’t seem to be the case this time around. Many small business owners say the credit crunch is a major reason they won’t be hiring anytime soon.
With little funding available, small businesses will rely more on temporary hires and independent contractors, says Business Week.
And in companies of all sizes, existing workers will just be expected to do more.
Daniel W. Glier, president of Glier’s Meats in Kentucky, an 18-person, $3 million sausage maker, told Business Week he’s keeping headcount down by restoring some workers’ hours that got cut earlier this year. He’s also using temps so that if he has to let them go, his unemployment insurance premiums won’t rise. “I’m not going to stick my neck out right now and hire people,” he told the magazine.
The good news, however, is that the number of layoffs at small and mid-size businesses are shrinking. Companies with less than 50 workers shed 75,000 jobs in October, down from 288,000 in March, said Business Week.
This article was submitted by Katie Kapler, Director of Online Strategy for Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com