LANSING – A new survey shows eleven percent of small businesses in Michigan reported an increase in the number of employees in the second quarter, 3 points better than the year before. But on the flip side, only 22 percent plan to hire more employees over the next 12 months, down from 29 percent in the previous quarter.
This news comes from the Small Business Association of Michigan’s latest quarterly Small Business Barometer survey, done with the support of the Center for Urban Studies of Wayne State University and the Public Policy Associates of Lansing.
“Small business owners tell us they continue to be upbeat about their economic prospects – 59 percent expect sales to increase over the next year and 45 percent expect profits to go up,” said SBAM Vice President Communications Michael Rogers. “But we’re still waiting for that optimism to express itself in stronger hiring intentions.?
Small employers may be wary of rumblings in Lansing that lawmakers could try and rush tax revision through the lame duck legislative session, Rogers said.
“Hiring more workers is a major financial commitment at small firms, and you need to have some confidence about the direction of the economy. But fear of dramatic changes in the business tax system could be creating uncertainty about whether additional hiring is really a good move at this time.”
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