Small businesses are cutting back on seasonal hiring.
Store and restaurant owners are moving into the holiday season with caution. A new study by Alignable found only 7% of small businesses plan to hire more temporary help this year. Compare that to 36% last year. Higher costs and lower sales expectations are cited as reasons why business owners are pulling back.
“It’s harder and harder for small businesses and restaurants in particular to make any money,” Local industry expert Jonathan Horowitz said. “The profit margin was slim to begin with and it’s being shrunk even more because of inflationary pressures.”
Horowitz still anticipates a busy holiday season in the Greater Houston area, but it’s clear businesses and individuals are feeling the impact of a slowing economy. Economist Vann Ginn is concerned about the nationwide impact of a less than stellar holiday shopping season.
“A lot of times these small businesses bet on the growth that happens during the holidays for the rest of their year,” Ginn explained. “If we’re going to see substantial slowing in revenue, that’s going to have an effect not only for the holidays, but thereafter.”