Small Business Hiring Plans Weaken, Signaling Economic Slowdown

Hiring plans among U.S. small businesses in March were the weakest since May 2020 during the pandemic recession.

A net 11% of small firms surveyed plan to create new jobs in the next 3 months, down from 12% in February and below the 11.8% historic average.

Job creation plans indicate slower than typical growth for a strong economy.

Current hiring activity remains solid although waning from peak levels.

More small businesses reported raising compensation in March and plan to raise it in the next 3 months.