New Survey: Many Small Businesses Bearish About Re-Hiring
Washington, DC – A new survey conducted by Morning Consult for the Bipartisan Policy Center finds that a third of small businesses that have shed workers as a result of COVID-19 either do not plan to or are unsure if they can re-hire them, pouring cold water on the potential for a speedy, V-shaped economic recovery.
The survey finds 28% of small businesses have laid-off workers and 30% have furloughed workers, with roughly 40% taking at least one of these actions. More than 60% of small businesses that either laid off or furloughed workers said that expanded unemployment insurance played a role in their decision.
While most small business owners plan to re-hire laid off (64%) or furloughed (70%) workers, a sizeable minority of around a third of small businesses either do not plan to re-hire or are unsure if they will be able to re-hire.
“The enhanced unemployment insurance benefit means that a substantial number of Americans can now earn more from unemployment insurance than from their job,” said Shai Akabas, BPC’s director of economic policy. “This enhancement has been important at a time when Americans are being asked to remain home and practice social distancing. The additional income is especially vital for those workers without paid family leave who are forced to quit their jobs in order to care for children or family members due to school and child care closures. But when relief turns to economic recovery, Congress needs to rethink those incentives.”
Other findings from the survey:
- While a majority (56%) of small businesses say that expanded unemployment benefits have had no impact on their workforce, nearly a third (32%) say that these benefits have made it more difficult to retain their employees
- Expanded unemployment insurance is a less significant challenge than declining revenue (74%) and family and child responsibilities resulting from school closures (52%)