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Small businesses are hiring again, but cautiously

 

The Associated Press

 

NEW YORK -- Nina Vaca is interviewing job applicants at her staffing company again after putting hiring on hold at the end of last year. 

 

Vaca expects to hire more than 50 people for her firm, Pinnacle Technical Resources, by the end of 2013. Demand is soaring for the high-tech temporary workers it places at large corporations. The reason for her caution: Months of uncertainty about federal taxes and budget cuts has disappeared. 

 

"It's a great time to double down. People are looking for information technology talent," says Vaca, whose 160-employee company is based in Dallas. 

 

Vaca's story will sound familiar to small business owners across the country. They want to add staffers, and many are hiring, but they're taking their time before they commit to a new employee. Many are waiting for signals that revenue will remain strong. They want to be sure they can afford the added expense of new workers. 

 

Their caution helps to explain the slow but steady growth in jobs nationwide. Companies of all sizes have added an average of 163,000 jobs a month since March, according to the Labor Department. Surveys released last week by payroll provider ADP and software maker Intuit showed that small business hiring is picking up some modest momentum. The ADP survey, for example, showed that small businesses added 58,000 jobs in May, up from 42,000 in April.  

 

 

 

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