Survey: U.S. business hiring has hit 7-year low

WASHINGTON — A measure of hiring by U.S. companies has fallen to a seven-year low and fewer employers are raising pay, a business survey found.

Just one-fifth of the economists surveyed by the National Association for Business Economics said their companies have added to their workforces in the past three months. That is down from one-third in July. Job totals were unchanged at 69% of companies, up from 57% in July. A broad measure of job gains in the survey fell to its lowest level since October 2012.

The hiring slowdown comes as more businesses are reporting slower growth of sales and profits. Business economists also expect the economy’s growth to slow in the coming year, partly because tariffs have raised prices and cut into sales for many firms.

“The U.S. economy appears to be slowing, and respondents expect still slower growth over the next 12 months,” said Constance Hunter, NABE president and chief economist at the accounting firm KPMG.

Hiring may also be slowing because the unemployment rate is at a 50-year low of 3.5%, and many companies are struggling to find enough workers. The survey found that 43% of companies reported shortages of skilled workers, though that figure has declined for three straight surveys. Government data shows that companies are posting fewer available jobs, suggesting that demand for labor is weakening, as well as supply.

Perhaps because of concerns over a weakening economy, businesses are less likely to offer higher pay, even with unemployment at a 50-year low. Just one-third of economists said their firms had lifted pay in the past three months, down from more than half a year ago.

Companies are also cutting back on their investments in machinery, computers, and other equipment.