Health Care Expenses Dampen Hiring and Pay Raise Plans Among U.S. Business Owners

U.S. business owners are adapting to higher energy prices and interest rates, but rising health care costs are dampening their plans to hire new employees and give pay raises during the next six months, according to the biannual PNC Economic Outlook survey. Of those who offer health insurance, nearly 6 out of 10 said they are likely to reduce their employees’ coverage in the future.

The survey of small- and mid-sized business owners and senior decision- makers across the United States also found that health care reform is the No. 1 issue they would most like to see addressed in the 2006 mid-term elections, followed closely by the nation’s reliance on foreign energy sources and tax reform.