Yahoo Finance Bah Humbug! Inflation Devastates Christmas Bonuses as 42% of Business Owners Cannot Afford Them
While the pandemic devastated the well-being of many American small businesses, the inflation that has ensued since hasn’t done them any favors either. When economic factors force companies to scale back spending, the employees suffer.
Discover: 7 Best Canadian Cities To Live In If You Make Less Than $100,000
Learn: Pocket an Extra $400 a Month With This Simple Hack
This holiday season, many will go without one of the things they work all year to receive. According to a survey conducted by PublicSquare and RedBalloon, 42% of business owners who typically give out Christmas bonuses won’t be able to afford them this year.
The survey, part of the November edition of the Freedom Economy Index, found an additional 28% of businesses are planning smaller employee bonuses in 2023, 25% said that benefits will be about the same this year and 5% claim that bonuses will be bigger than previous years.
Decreased consumer spending and increased costs have put a lot of businesses in a precarious situation as we near year-end. According to the survey, 52% of business owners said that sales were “much lower” during the crucial Black Friday/Cyber Monday weekend. At the same time, 81% of respondents claim that their suppliers’ prices have increased during the month prior to being asked.
After 12 straight months of decline since the record high of 9.1% in June 2022, the annual inflation rate rose in July and August of 2023. While the rate has dipped to 3.2% in October from 3.7% the previous month, it’s still higher than the Federal Reserve’s target of 2%.
This Florida City Has the Highest Inflation in the US — 2 Factors Impacting Costs
High inflation means steeper prices for Christmas gifts and groceries and for those already struggling to make ends meet, that means a financial tightening during the Christmas season. A lower or non-existent bonus will crush the dreams of many American families on December 25.
Not surprisingly, the survey found that small business owners aren’t overly optimistic about the future of inflation and the U.S. economy in general. Ninety-four percent of respondents think the country is on the wrong track economically and 81% feel a major recession is still forthcoming.
More From GOBankingRates
This Mistake Can Tank Your Credit Score 100 Points Overnight
If You Find a Rare 'Doubled Die' Penny, It Could Be Worth $1.14 Million
This article originally appeared on GOBankingRates.com: Bah Humbug! Inflation Devastates Christmas Bonuses as 42% of Business Owners Cannot Afford Them
