Small Business Hiring Slowdown Signals Economic Warning for US
TEHRAN (Tasnim) – Small businesses across the United States are pulling back on hiring at the fastest pace since the early months of the COVID-19 pandemic, raising concerns about potential economic slowdown, warns one economist.
The percentage of small businesses with unfilled job openings dropped to 32 percent in August, down from the previous month and marking the lowest level since July 2020, Fundstrat Global Advisors economic strategist Hardika Singh said Monday in an opinion piece published by MarketWatch, Xinhua reported.
The data she cited came from the National Federation of Independent Business (NFIB) monthly survey released Sept. 10.
The trend represented a significant shift for small enterprises, which had served as the primary engine of American job creation in recent years, she said. From early 2021 through the second quarter of 2024, small businesses generated approximately 53 percent of all new jobs in the United States.
"Without small businesses and their hiring, already precarious economic growth could be prone to a pullback," Singh wrote in the story.
US Federal government data revealed that in June and July, small companies with fewer than 250 employees experienced net job losses while larger corporations had net job gains. This pattern had not occurred for two consecutive months since May 2020, during the height of pandemic lockdowns.
The construction sector showed particular weakness, with 49 percent of small construction businesses reporting job openings they cannot fill, according to the NFIB survey. This figure represented a decline from previous months and stands 11 percentage points below last year's level.
Small business employment typically remains more stable during economic downturns compared to large corporations, which tend to cut jobs quickly when facing financial pressure.
Research from the Federal Reserve Bank of Chicago published in August 2025 showed that during the pandemic recovery, firms with fewer than 10 employees accounted for 19 percent of net job gains, compared to just 5 percent during the recovery from the 2008-2009 recession.
