Archives for August 2012

Small businesses aren’t hiring due to economy

Obama Tax Hike

With the debate over taxes expected to come to the House floor over the next couple of days, a new survey of small businesses shows that, despite being under-staffed, many small businesses don’t plan to hire in the coming months:

Many small business owners are holding back on adding more employees in the coming months because of concerns about the economy — even as some report that their businesses are understaffed.

That’s the main takeaway of a new poll of more than 500 small business owners along the East Coast by lender TD Bank.

Seventy percent of the respondents said they plan to maintain their current employee levels. Only 21 percent said they plan to hire one or more workers in coming months.

Among the respondents, 35 percent said they were somewhat or significantly understaffed, the bank said.

Small businesses employ about half of all U.S. workers, so the survey findings don’t bode well for a pickup in the pace of hiring by the private sector.

Yes, there is still a lot of concern about the economy. But looking past the short-term indicators that will be bantered about until the election, the coming tax hikes are probably a factor here as well given that many small businesses file their income taxes as S-Corps or sole proprietors.

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