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.
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.
And that credit card debt – the annual percentage rate is the highest in decades. See this in the chart below.
All 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.
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