According to recent data, small businesses have cooled down on hiring, which has brought overall workforce expansion numbers to the lowest levels since the early months of the pandemic. Even though applicant pools have expanded as the tight pandemic labor market has let up, pay expectations remain high amidst inflation which has made it challenging for small businesses to make hires. Furthermore, fears of a recession have likely made many small business owners more cautious with their spending. While layoffs at large companies have provided an opportunity for small businesses to attract talent, experts do not believe this trend will persist.
See "Small businesses slow hiring as a means to cut costs amidst fears of an economic downturn", Ruth Simon, Wall Street Journal, May 16, 2023