Small businesses say they're pulling back on hiring amid tariff uncertainty
Source: CBS News
Updated on: June 6, 2025 / 5:26 PM EDT
Some small business owners say they are pulling back on hiring as tariff-driven cost increases make bringing on new employees an untenable proposition.
As they bear added expenses on imported inputs and goods, companies are looking to trim costs wherever possible, including labor. That can mean pressing pause on hiring, cutting workers' hours and even laying off staff, business owners say. Smaller enterprises often preempt bigger corporations in reducing their headcount, as they typically have less financial cushion to tide them over during downturns and periods of economic uncertainty.
Mike Roach, owner of Paloma Clothing, a men's and women's boutique in Portland, Oregon, told CBS MoneyWatch that while he has not yet laid off any salespeople, he is cutting down on labor-related spending. "We are not hiring and [are] trying to shave anyone's hours who is willing and able," he told CBS MoneyWatch.
Roach said he is looking for ways to save in order to make up for a 22% drop in profit in May, compared with the same period a year ago. He attributes the drop in earnings to weaker consumer demand amid rising prices and general economic uncertainty.
Read more: https://www.cbsnews.com/news/small-business-hiring-tariffs-uncertainty/