Alignable’s August Small Business Labor Report has just been released, and it reflects a drop in permanent, full-time hiring to just 25%, a record low.
But it also shows that small business owners are investing more in temporary hires, breaking a new record: 32% – a surge of 11 percentage points over June.
These findings are based on a poll of 4,619 randomly selected small business owners surveyed from 7/2/23 to 7/31/23, along with historic poll results from 80,000+ SMB owners over the past 18 months.
SMB employers say they’re trying to boost sluggish revenues while dodging the added expenses of full-time staffers. Here’s a summary of other report highlights:
Revenue & Economic Concerns Drive Hiring Shifts:
- 26% are still most concerned about inflation, but nearly as many – 24% – now list revenue generation as their No. 1 worry.
- Economic instability with declining margins, rising interest rate pressures, and rent spikes are fueling these changes.
Many Industries See Jump In Temporary Hiring
- Gyms lead with 46% hiring part-timers (up from 22% in June).
- Industries including beauty, restaurants, transportation, finance, retail, and construction show notable rises, too.
Many States Reflect The Same Trend
- Colorado leads with 49% hiring temporary workers, up 38 percentage points since June.
- Massachusetts, Michigan, and Florida also exhibit strong surges in hiring part-timers and freelancers.
- Illinois shows a steady commitment to temporary hiring with one-quarter of SMBs there hiring only part-timers in both June and July.
To see many more details, read Alignable’s August Small Business Labor Report here.
