Citing concerns about the healthcare law and a persistently weak economy, a substantial number of small business owners say that they have no intention of hiring more workers in the next six months or so, a new survey reveals.
According to financial services organization PNC, approximately three out of four small and medium-sized business owners – 75 percent – stated that in the next half-year, they don't expect to increase the size of their payroll by recruiting individuals who are seeking work. Additionally, approximately 20 percent reported being optimistic about how their company, in particular, would perform over the next six months from a perspective of sales growth.
"These findings show small business owners are carefully taking half steps forward while keeping a wary eye looking for more customers and action in Washington to resolve the debt ceiling impasse and keep the federal government open," said Stuart Hoffman, chief economist at PNC.
The survey indicated that just 16 percent of business owners look to add more full-time employees to their ranks, while 8 percent will cut their staff through layoffs. The vast majority – 73 percent – don't plan on making any changes to their employment profile whatsoever. When asked about employee benefits and whether the Patient Protection and Affordable Care Act influenced their decision in this matter, 22 percent said that the healthcare law had some effect.
In a separate survey performed by the National Federation of Independent Business, members of the NFIB reduced employment by an average of 0.10 workers per company in September.
"Most of the jobs being 'created' are likely to be part-time, as owners hedge their hiring while they try to fathom how the healthcare law, its regulations and penalties will impact them," said William Dunkelberg, chief economist for the NFIB.
