Many small business owners are reluctant to hire new workers given their uncertainties about the economy. One drawback that they see to hiring permanent workers is the need to deal with employee benefits and healthcare. These companies often rely on independent contractors and temporary workers to keep their businesses running. Even as the economy shows renewed signs of growth many experts doubt that employers will drastically change their hiring policies.
See "Small firms slow to hire after doing more with less", Ann Meyer, Chicago Tribune, September 26, 2004