Jobs lost at small businesses totaled 120,000 last month. What does that portend for larger companies?

The National Retail Federation projects 67 million shoppers will visit small businesses this Saturday.

The same fear is hitting job sites nationwide.

The September jobs report, delayed due to the government shutdown, showed the food services sector added more than 36,000 jobs for the month, more than any sector besides health care.

Between concerns about tariffs, health insurance premiums, and immigration crackdowns, surveys are showing small-business pessimism about the economy.

It’s a downbeat picture among small business owners, many of whom have been dealing with tariffs and other stressors.

Thirty-two percent of business owners say they have jobs open that they can’t fill. And 27% cited labor quality as their single most important problem— the highest level since this time in 2021.

It’s slowing fastest for workers in low-wage and entry-level jobs. 

In October, small- and mid-sized businesses actually shrank their headcounts, according to payroll processor ADP. That downsizing, said one business owner in Virginia, was due to the “devastating” tariffs.

For Todd Adams of Sanitube U.S., and Katie Lazar of Cain Vineyard & Winery, tariffs have created new obstacles to business.