US Small Business Hiring Intentions Halve, Hit 2001/2008 Recession Lows
Just 9% of US small business owners plan to hire in the next 3 months, the lowest since May 2020 and matching levels seen during the 2001 recession and the start of the 2008 financial crisis. Hiring intentions have halved over six months, while 13% cite labor costs as their top problem, a record high.
A new survey reveals a sharp pullback in US small business hiring. Only 9% of owners intend to add staff over the next three months, the lowest reading since May 2020. This figure has dropped by half in the past six months, now aligning with the depths of the 2001 recession and the early stages of the 2008 financial crisis.
At the same time, just 29% of small firms report unfilled job openings, also the lowest since May 2020. The data signals a rapidly cooling labour market among smaller enterprises.
Labor costs have emerged as a major headwind. Approximately 13% of firms now cite labour costs as their single most important problem, the highest share on record since the 1970s.
Source: The Kobeissi Letter