Small Businesses Not Planning On Hiring In The Obama Economy
That should be a no-brainer, but a study from the US Chamber of Commerce bears it out:
Almost two-thirds—64%—of small-business executives surveyed said they weren’t expecting to add to their payrolls in the next year and another 12% planned to cut jobs, according to a U.S. Chamber of Commerce report to be released Monday. Just 19% said they would expand their work forces.
This comes after a Labor Department report Friday showed employers added few jobs in June, and unemployment rose to 9.2%. The bleak figures joined other data showing the recovery losing momentum in recent months, which has caused many analysts and policy makers to lower their forecasts for economic growth in the second half of the year.
The Small Business Administration says small businesses, defined as companies with fewer than 500 workers, employ about half of the workers in the private sector. In the Chamber’s survey of 1,409 executives, conducted by Harris Interactive, small businesses were defined as firms with revenue of $25 million or less.
More than half of the small-business executives in the June 27-30 survey cited economic uncertainty as the main reason for holding back on hiring. About a third blamed lack of sales, while just 7% pointed to problems getting credit.
If we take the 64% of small businesses that are not hiring and adding the 12% that are planning on cutting payroll–which would also mean they’re not hiring–that’s over 3/4 of those businesses not hiring… which adds up to a really good reason why the unemployment numbers are not improving.
Add to that the people who have a plan to start a small business but have decided not to because of the same economic uncertainty that was mentioned in the quoted article, and you get an even better picture of why Obamanomics is a miserable failure at job creation.