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More U.S. Small Businesses Letting Workers Go Than Hiring

Gallup Economy (05/28/13) Dennis Jacobe

The Wells Fargo/Gallup Small Business Index survey of 603 small-business owners reveals a net hiring index of -12 in April, meaning that more small-business owners are letting workers go than hiring them. The index has basically held steady since January 2010, but it marks an improvement from -27 in January 2010. Net hiring intentions were +6 last month, meaning that the percentage of owners planning to add net new jobs exceeds the percentage of those who expect to eliminate jobs over the next 12 months by a slim margin. Rising health care costs associated with the Affordable Care Act have prompted 20% of small-business owners to eliminate workers and 40% to delay hiring.