Who is expected to stimulate our economy? Small businesses are the only sectors that are hiring, but not all business owners feel the same.The current job market drought in the U.S. has left many business owner to downsize or freeze hiring new staff, but thier has been some relieve in December. Small business owners across the country have reacted to the brief change in the economy.
The U.S. unemployment rate fell to from 9.8 % to 9.4 % in December with the economy adding 103,000 jobs, the Labor Department reported Friday. That was the biggest one-month change since April of 1998, and the last time it was this low was in May of 2009.
Out of the 103,000 jobs added in December, 47,000 jobs were added in the leisure and hospitality sector, and 36,000 jobs were added in the healthcare industry.
Things are looking better and it seems as if we are pulling through this tough job market. How do business owners feel about hiring?
Hale and Hearty Soups which has 23 locations across New York City, is currently in hiring mode, according to CEO, Simon Jacobs.
“The fact is for us our business has held up remarkably well during the recession, we didn’t have any downturn in our sales,” Jacobs told FOXBusiness. “I think there is a change in the optimism of business today, due to the change in the balance of power in the government.”
The extension of the Bush-era tax cuts and the “100 percent expense” rule for businesses in 2011, that allows employers to write off any big-ticket purchases made throughout the year.
“When we open a store, it costs a lot of money, and if we can write that off in one year, it reduces our tax bill,” Jacobs said. “The cash we will save from that we will use to build another store, and when we open a new location, we hire another 25 people.”
Health care does not see the same positive outlook for 2011.The lingering fate of health-care reform is one issue that keeps them from hiring. him up at night. Health insurance to all employees will increase the cost of employees between 30 and 50 percent on low-wage employees, in addition to salaries, Jacobs said.
Aldo Venturino, co-owner of Venezia’s Pizzeria in Rio Rancho, N.M, said he is not quick to hire. “Our staff are usually here for a long time,” Venturino said. “There’s not a high volume of turnover. I don’t want to hire, just to downsize later. Business has stabilized in the past year and possibly even gone up one or two percent, soon we might add to our staff.”