Small Business

Chart of the Day: Small Business Employment Tanks While Consumer Credit Skyrockets

Based on the latest data from U.S. small businesses (SMBs), the demand for labor has declined again, with nearly two out of every three (63%) putting their hiring on hold because they can’t afford to add staff, and 10% of that group is laying off workers.

This decline is quite significant, as it’s 18% higher than it was in July (at just 45%). Beyond that, the percentage reducing their staff jumped 6% to 10% this month from just 4% in July. These are two key findings from Alignable’s September Hiring Report, released today. These insights are based on a poll of 5,618 small business employers from Aug. 13, 2022, through Sept. 6, 2022.

Examining labor costs alone, 58% of poll participants said labor costs are at least 50% higher than they were prior to COVID. Of those employers. Nearly half (49%) of those in a hiring freeze now said they were hiring earlier this year but shifted gears due to economic factors, including general inflation, labor costs, and fears of a recession. See this in the chart below and learn more here.

Small Businees Jobs 2022-09

Furthermore, some 66% of SMBs say we’re in a recession for sure, with 28% adding it feels more like a “Depression.” And they’re 9% more pessimistic about the economy than the average U.S. SMB, as 57% of them think we’re in a recession.

Just how well are many of the SMB customers doing? Disposable income has stagnated in the current rising inflationary environment. To finance many Americans’ needs, they are using their credit cards more as their revolving credit balances skyrocket. See this in the chart below and learn more here.

Consumer Credit 2020-09And that credit card debt – the annual percentage rate is the highest in decades. See this in the chart below.

Credit Card Rate 2022-09All this is occurring while the Fed fights 40-year high inflation by raising rates and starting a quantitative easing program – see here.

The Biden administration can sugarcoat this all they want, but the American people on the ground know differently. Here at the Right Wire Report we have been predicting this for months. Are we that much smarter than our financial elites? Hardly … we just are telling the truth that they are unwilling to do.

The only question that we have to understand is what gaslighting will the financial elites do next and what mechanisms they will use to hide their mischievousness. Reading this thread on the Right Wire Report we have provided clues for a potentially unfortunate future for America.

See more Chart of the Day posts.

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 RWR original article syndication source.

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Written by Tom Williams

Born down on the farm in America's Midwest, my early life was spent climbing the ladder via a long career in information technology. Starting as a technician, and after earning a degree going to night school, I eventually found a place working at ATT Bell Laboratories as a software engineer.

Later moving into management and then a long stint in a major management consulting firm working with major banking, telecommunications, and retail companies. Working in various states in America, I also spent considerable time living and working in several European countries - currently expat in France. As a side career, I was heavily involved in real estate development and an avid futures trader. This experience can give one a unique view of the world.

The storm clouds of dark change are near. Today America is at a crossroads. Will it maintain its prowess as a national leader in the free modern advancing world, or will it backtrack in the abyss of the envy identity politics of tyrannical socialism, and the loss of individual freedoms. The 2020 election may have decided this. Join the Right Wire Report team and make a stand.

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