Report finds hiring freezes and layoffs are increasing at small businesses


Alignable’s September hiring report is out and the results show that hiring freezes and layoffs among small businesses are increasing rapidly.

According to the study, 63% of small businesses in the United States are not hiring because they cannot afford to hire. That’s an increase of 18 percentage points from July’s rate of 45%. Here are some other highlights:

-49% of those who stopped hiring were looking for workers to fill jobs earlier in 2022, but stopped hiring due to high payroll charges, recession fears and reduced incomes.

-58% of small business employers are paying at least 50% more in labor costs than before Covid.

-Layoffs are also increasing. Today, 10% in the United States are reducing their workforce, up six percentage points from 4% in July.

-The top three states where small businesses are freezing hiring are New York (75% not hiring), Ohio (74%) and Pennsylvania (68%). In these three states, 7% of small businesses are reducing their workforce.

-Small business layoff rates are highest in Florida (12%) and Illinois (11%).

-Sectors most affected by hiring freezes and layoffs are real estate (69%), automotive (67%), healthcare (67%), retail (66%) and finance (61%).

-While many restaurateurs have spent most of the past year severely understaffed, now 55% say they are not hiring (up 17%) and 9% are laying off workers.

-Only 23% of small businesses have fully recovered from the impact of Covid – the worst recovery rate in over a year, down 2% from July and 20% from December 2021.

The information in the report is based on a survey of 5,618 small business employers between August 13 and September 6.


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