Page 25 - ARUBA TODAY

BUSINESS Thursday 4 July 2019
A25

Already cautious businesses grow even more wary about hiring

By JOYCE M. ROSENBERG Google, Facebook and
Associated Press Netflix, not only does soft-
NEW YORK (AP) — Corri ware maker Gunner Tech-
Smith is planning to hire a nology not expect to hire in
full-time project manager the next year, “we are look-
for her public relations firm ing at how we can get by
and make her part-time as- without replacing employ-
sistant full-time. But she has ees we are sure to lose,”
a wary eye on the econo- CEO Cody Swann says.
my. Swann’s solution is to auto-
“It’s been a long time since mate some of the work that
we’ve had some trouble in software developers gen-
the economy. It can’t all erally do at his Las Vegas-
be wonderful — something based company; for ex-
will happen,” says Smith, ample, reviewing software
owner of Charlotte, North coding to detect errors.
Carolina-based Black The tariffs that the Trump
Wednesday. administration has placed
Smith, who believes an on thousands of products
economic downturn is likely imported from China and
in the next 12 to 18 months, retaliatory duties placed
says. “I will be extra cau- on U.S. goods are affect-
tious with hiring alongside ing many small businesses,
also making plans to stock- In this Monday, July 1, 2019, photo, software engineer Joe Wilson works in his home in Highlands even if they’re not import-
pile and save revenue.” Ranch, Colo. ers or exporters. Software
She’s aware that market- manufacture Joe Wilson
ing is one of the first budget ADP released Wednesday tating process again, and enough clients to support might have to put off hiring
items to be slashed when showed that its business new entrepreneurs learned the cost of hiring someone freelancers if he feels the
corporate executives are customers with up to 49 from the unhappy experi- great, or do you hire some ripple effects of tariffs that
anxious about profits. employees cut 23,000 jobs ences of others. great people and hope his customers must pay.
Small business owners, who in June on top of a 38,000 Hiring is an ongoing bal- the revenue comes in,” Fish “These issues impact the
have taken a conservative reduction in May; this is the ancing act for Scott Fish says. economy and people’s
approach to hiring during first time ADP has reported and business partner Sonja “All of them decided to confidence in the econo-
the economic expansion, job cuts since September Skvarla, co-owners of Off table not just my work but my. It’s easy for a business
are becoming even more 2017. So far this year, small Road, a business consult- other companies’ as well. It to defer spending money
careful amid concerns that businesses have added ing firm based in Portland, was shocking and sudden,” on a software project for a
the economy is weaken- about 25,000 jobs on av- Oregon. Segal says. There are cur- couple of quarters if they
ing. They’re well aware that erage each month, com- “Businesses are charging rently about 10 freelancers are worried about these
economists believe the pared with an average ahead, but there is a small working at Philadelphia- things impacting their sec-
country’s gross domestic 52,000 last year and 56,000 element of uncertainty in based Segal & Co. tor,” says Wilson, owner of
product slowed consider- in 2017. Their hiring pace the economy, and we are Many small businesses also Volare Systems, based in
ably in the second quarter has lagged behind that of noticing that it continues to struggle to find qualified Highlands Ranch, Colora-
— forecasts give the GDP larger companies, which be on the minds of business workers. While that can be do.
an annual rate of about have fed the hiring boom owners,” says Fish, a problem for companies Wilson uses freelancers
2%, down from 3.1% in the in the country the past few So although Fish and Skvar- of all sizes, small businesses because his work often in-
first quarter. Owners’ con- years. la are considering as many generally can’t offer the volves customers’ projects
cerns and caution are in- Although the Great Reces- as five new staffers over salaries and benefits that rather than their ongoing
creased by the Trump ad- sion ended 10 years ago, the next year, they’re also big corporations do, and needs. He has three now,
ministration’s trade wars. small business hiring never treading carefully, hoping with an economy that’s and hopes to hire two to
Some owners are cutting recovered to the levels be- that their hiring is in sync looking iffy, the smaller five more in the next six
jobs, likely by not filling their fore the downturn began with the work clients have player are at an even months to a year — as long
open positions as well as in 2007. Owners who had for them. greater disadvantage. as the economy and/or
by laying off workers. A re- laid off workers didn’t want “It’s a chicken-before-the- Because of competition tariff issues don’t slow his
port from payroll processor to go through that devas- egg thing — do you have for staffers from giants like business. q

US services companies grow more

slowly in June

By PAUL WISEMAN Sixteen services industries reported growth
Associated Press last month, led by real estate.
WASHINGTON (AP) — U.S. services com- Services dominate the American econo-
panies grew at a slower pace in June as my, accounting for 84% of private-sector
the pace of hiring, orders and production jobs. Some respondents to the ISM survey
decelerated. expressed concern about heightened
The Institute for Supply Management, an trade tensions — though the overall re-
association of purchasing managers, says sults remained healthy. President Donald
its non-manufacturing index fell to 55.1 Trump has imposed tariffs on $250 billion in
from 56.9 in May. Anything above 50 sig- Chinese imports as the two countries seek In this June 19, 2019, photo a worker balances on a steep roof
nals growth, though, and the services sec- to settle their differences over Beijing’s ag- as he lays down shingles on a roof on a new house in a Brandon,
tor is enjoying a 113-month winning streak. gressive trade policies.q Miss., neighborhood. Associated Press