Inflation Forces Small Businesses into Layoffs, Salary Cuts, and Workforce Reductions
NewsData.io · United States · Sep 23, 2026
Small businesses across Minnesota are grappling with an affordability crisis driven by rising healthcare, insurance, tariff, and fuel costs, prompting layoffs, salary freezes, and plan changes. A Federal Reserve Bank of Minneapolis survey of 905 businesses found profits fell at more than half of respondents, with some warning of potential closures. Notably, one industrial manufacturer laid off five of 50 workers, while a Minneapolis ad agency absorbed a 30% health insurance increase and $150,000 in freelancer costs tied to the state's new paid leave law. The dual pressures of inflation and immigration enforcement actions are compounding challenges for client-side businesses that staffing agencies serve.
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