Analysis published Thursday argued that small businesses across the U.S. are sending signals of stagnation, a trend seen across the economy.
Analysis published by the United Business Journal argued that small businesses are scaling back on hiring, which will likely lead to far slower job growth and possible stagnation within the private jobs sector. These trends are backed by a phenomenon called the “Great Resignation,” labor shortages, and overly cautious hiring practices by those small businesses still able to bring new people in.
“While this moderation may align with the Federal Reserve’s efforts to rein in inflation, it presents challenges for President Joe Biden’s economic agenda, particularly in the face of persistent concerns about inflationary pressures,” the analysis noted. (LEARN MORE: Small Business Owners Sue City Lawmakers, Send Scary Message)
Broader Economic Concerns
Other economic indicators, such as declines in wage growth at staffing agencies, reductions in temporary job hires, all point toward a weaking U.S. jobs market. “While the Biden administration views steady job creation as a cornerstone of its economic success, Federal Reserve officials see the need for a slowdown in hiring to address inflationary pressures effectively. The central question for the Fed revolves around whether a weakened job market will be necessary to achieve this goal. This uncertainty underscores the complexities involved in balancing employment and inflation in the current economic landscape,” the analysis continued. (LEARN MORE: State Law Destroys Employment Opportunities For All)
Despite these concerns, there remains some optimism about stabilizing our current economic conditions, leading to a “gradual normalization of the job market.” The analysis did not explain where this optimism comes from, nor what shapes it. But we here at Million Voices know how to help shape policy in favor of small businesses and a stronger economy. (LEARN MORE: Small Business Owners Erupt On Inflation, Biden’s Cuba Move)
Tell Your Lawmakers What You Want
Did you know that you, your family, and friends can send letters directly to your elected officials today? We can tell your leaders what you want from their time in office, and what you expect from our federal government. Letter-writing campaigns, or even just a single letter, can be enough to sway policy and create positive change.
If you’re concerned about lawmakers making decisions on your behalf, without your input, then tell them today. (LEARN MORE: State Finds County Violated Election Law In 2022)