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Small businesses say they're pulling back on hiring amid tariff uncertainty

Small businesses say they're pulling back on hiring amid tariff uncertainty

CBSN
Friday, June 06, 2025 07:09:35 PM UTC

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 else they can — including on labor. That can mean pressing pause on hiring, cutting workers' hours, and even laying off staff, business owners say. Smaller enterprises lead bigger corporations in reducing head counts, as they typically have less financial cushion to tide them over during 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. 

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