The economy still seems to be affecting small businesses - especially when it comes to growth and the hiring of new employees.
According to the CBIZ Small Business Emplyoment Index (SBEI), a barometer for hiring trends, October saw a decrease in hiring among companies with 300 employees or fewer.
In October, the index fell 1.28%, after already falling .81% in September.
Phillip Noftsinger of CBIZ said that "this month's SBEI results show a steeper decline than in September, indicating that job growth at the small business level is still struggling."
"In many cases, employers facing a year-end calendar may be opting to slow the replacement process for positions opened due to voluntary attrition in an effort to boost net income. We should see some stabilization to the numbers as we move into the holiday season and hope for job growth during that period as well."
That's the upside, according to the report. As we edge closer to the big holiday shopping season, consumer spending is likely to increase dramatically. In turn, this could boost the economy, which would then increase the all important confidence factor among small business owners.
Confidence = more hiring.
But the harsh reality is that 28% of those companies surveyed said they had a decrease in employees over the last month. Half of the companies remained stagnant, reporting the same amount of employees. And only 22% said that they increased their staff.
Is the economy still having an effect on your hiring practices? Let us know in the comments.
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