News

Small Businesses Foresee Fewer Layoffs, but Worry about Economic Recovery
7/13/2010

Small to medium sized businesses in the United States have a few employment-related topics on their agenda for the upcoming months. One of them is the need to expand, and hire more workers. Moreover, while small businesses feel the need to expand, they cite certain economical and governmental concerns as reasons to hesitate on expanding their businesses.

One main worry is a decrease of optimism about the recovery of the United States economy. When the CEOs were surveyed on how they expected the United States economy to perform, they had a general inclination towards a lowering of expectations about the overall economic recovery.

According to a recent report on The Wall Street Journal, data provided by the company Vistage International, Inc. says that CEOs of small businesses are planning to layoff fewer employees in the upcoming months, and year; the Vistage CEO Confidence Index provided this data.

The report highlighted interesting data on expected layoffs. Nine percent of executives polled with the survey are planning layoffs in the next 12 months. However, this number is the lowest level in three years, and with that, 47% of executives expected to keep the size of their workforce the same.

Further hesitation factors include the disillusionment about support from the government of small business. Tax and regulation concerns are also main-stage. The report goes on to state that more than 87% of CEOs surveyed feel that the government does not understand small business. Furthermore, they feel that the government does not fully understand the challenges small businesses face.

The data compiled by Vistage International, Inc. represents the responses of 1,617 CEOs; collected from June 24 to July 2. The most important factor for the outlook of small to medium sized businesses relies on the fact that they account for the largest pool of new jobs for the United States economy.

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