Bank of America: Small Business Hiring Declines for Third Straight Month

Small business hiring is slowing sharply, according to new data from the Bank of America Institute. The report shows hiring fell 6.7% year-over-year in July, marking the third consecutive monthly decline. Economists point to surging tariff payments—up nearly 170% since the start of the year—and ongoing labor shortages as major pressures on Main Street. While construction and manufacturing are seeing payroll growth, sectors like retail and services are pulling back. With small firms less able to shift supply chains or absorb higher costs, profitability is beginning to weaken, leaving many business owners cautious about adding workers in the months ahead.