How is economic downturn affecting US business owners? - survey

More than three-quarters of businesses in the survey have reported that they plan to lay off employees in the current economic downturn.

Fiverr building in Tel Aviv (photo credit: דוד שי/CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)/VIA WIKIMEDIA COMMONS)
Fiverr building in Tel Aviv
(photo credit: דוד שי/CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)/VIA WIKIMEDIA COMMONS)

In the US economy's current crisis, approximately 85% of business owners intend to implement a "hiring freeze," according to a new survey on Sunday conducted by Fiverr International Ltd. in partnership with Censuswide.

The companies conducted the survey across the United States among about 1,000 business owners of various size and revenue about what actions they would take should the economy weaken.

Of the 1,000 who participated, more than three-quarters are likely to engage with freelance talent. This would be for the purpose of filling in the gaps in their business within an uncertain economy. Some 43% of business people in the survey were planning on hiring freelancers.

"Businesses have proven their resilience over the past few years, but the economic downturn - including the cost-of-living crisis, inflation and the volatile stock market - has delivered yet another obstacle to add to the list," according to Fiverr Business general manager Shany Malbin. "Changes to headcount and working arrangements are unfortunately necessary during cost-cutting periods."

 Micha Kaufman, Fiverr co-founder & CEO. (credit: Yoav Hornong) Micha Kaufman, Fiverr co-founder & CEO. (credit: Yoav Hornong)

What were the effects of the inflation shown in the survey?

  • 41% of business owners said there was lower productivity in the workplace
  • 36% said that employees have been working more in terms of the number of hours
  • Nearly 90% of businesses said they need to check their budget to afford a lease, insurance, benefits, etc, while 30% said that their staff is more likely to ask for an increase in their salary or benefits.

78% of businesses in the survey have reported that they plan to lay off employees in the current economic downturn, slightly more than the 74% for remote-only companies.

"Businesses have proven their resilience over the past few years, but the economic downturn - including the cost-of-living crisis, inflation and the volatile stock market - has delivered yet another obstacle to add to the list."

Shany Malbin, Fiverr Business General Manager

Furthermore, the survey proved that freelance talent is useful, as 81% have admitted to using it to support their full-time staff.