"For the first time since 2020, more respondents expect falling rather than increased employment at their firms in the next three months," NABE President Julia Coronado was quoted as saying by US news agency.
The survey of 60 NABE members conducted from January 4-11 revealed that only 12% thought that hiring would continue in the next three months, while about a third said that their company did not face any labor shortages.
The forecast highlights concerns that more companies will be reducing headcount as the Federal Reserve continues to raise its benchmark interest rate, increasing borrowing costs for companies and hurting investment confidence.
Some 40% of those polled said their companies’ profit margins had declined over the past three months, according to Bloomberg, up from less than a third in July and October. Over a half said they expected profits to remain unchanged in the next three months.