Small-business owners cautious about hiring

Trade, economic fears fueling their pessimism

NEW YORK — Small-business owners, who have taken a conservative approach to hiring during the economic expansion, are becoming even more careful amid concerns that the economy is weakening.

They’re well aware that economists believe the country’s gross domestic product slowed considerably in the second quarter. Owners’ concerns and caution are increased by the Trump administration’s trade wars.

So far this year, small businesses have added about 25,000 jobs on average each month, compared with an average of 52,000 last year and 56,000 in 2017.

Their hiring pace has lagged behind that of larger companies, which have fed the hiring boom in the country the past few years.

Although the Great Recession ended 10 years ago, small-business hiring never recovered to the levels before the downturn began in 2007.

Software manufacturer Joe Wilson might have to put off hiring freelancers if he feels the ripple effects of tariffs his customers must pay on products imported from China.

“These issues impact the economy and people’s confidence in the economy. It’s easy for a business to defer spending money on a software project for a couple of quarters if they are worried about these things impacting their sector,” said Wilson, owner of Volare Systems, based in Highlands Ranch, Colorado.

Wilson uses freelancers because his work often involves customers’ projects rather than their ongoing needs. He has three now, and he is hoping to hire two to five more in the next six months to a year — as long as the economy and/or tariff issues don’t slow his business.