Reporting on the dismal monthly May jobs report released by the Labor Department, The Washington Post quotes two franchise small business owners who say uncertainty causes fear, which in turn stagnates job growth.
From the article:
Employers from coast to coast describe a situation in which tepid economic growth alone isn’t enough to prompt them to add to their payrolls. Sales have been rising, but slowly and tenuously. Doubts about the future have continued to chip away at confidence and prevented many business people from taking the leap of faith required to expand and hire new workers.
“Everybody is so fearful right now because of the uncertainty about the future,” said Bill Hall, who owns five Dairy Queen franchises around Fort Worth. “It’s a problem that’s impacting all of us. That uncertainty and that fear is the number one reason you’re not seeing job growth. . . .Everybody is in a situation where they’re afraid to make a move. Unfortunately, that’s caused everything to come to a standstill.”
Even businesses that have taken on new employees — the private sector has added jobs for 14 straight months — have done so with some trepidation.
Aziz Hashim, president of an Atlanta-based company that owns scores of Popeyes, Checkers and Domino’s Pizza franchises in Georgia, California, Arizona and Florida, said his firm added four new restaurants last year and is on pace for five this year. But he said a lack of clarity about government policy and doubt about the direction of the economy has held him back from more aggressive expansion.
“We have been expanding, but we could be expanding faster,” he said. “There’s no question that we could be doing more, but we have to be very careful because we can’t adequately project” what lies ahead.
Posted by Matt Haller, IFA Director of Communications