Report shows extreme heat reduces US small business and worker hours in July.
Report shows extreme heat reduces US small business and worker hours in July.
Record-breaking Heat Waves Impact Small Businesses and Employees
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Record-breaking heat waves across the U.S. in July have not only disrupted people’s daily lives but have also had a significant impact on small businesses and their employees. As temperatures soared to historic highs across the South and Southwest, small businesses were forced to close early, resulting in reduced paid working hours for employees. This unusual consumer behavior highlights the detrimental effect of high temperatures on local economies.
According to a report released by the small business payroll company Homebase, small business employees nationwide worked 0.9% fewer hours in the first two weeks of July compared to the last two weeks of June. While this can be considered a standard seasonal change typical of summer months, cities that experienced the worst of the heat wave saw slowdowns up to five-and-a-half times higher, indicating the severe impact of high temperatures on the local economy.
New Orleans and Memphis, for example, saw a significant decrease in working hours, with small business employees clocking 5.7% and 5.1% fewer hours respectively, compared to June. Business owners in these cities had to adjust their operating hours to accommodate fewer customers and protect their employees from excessive heat exposure. In July, Memphis experienced 11 days with temperatures at 90 degrees Fahrenheit (32 degrees Celsius) or above, while New Orleans recorded a staggering 26 such days.
On the other hand, cities that experienced shorter heat waves were able to increase their hours of operation and the number of employees working. Boston, for instance, only had two days in the 90s and saw the largest month-to-month increase in the number of hours worked by employees, with a notable 7.8% rise.
John Waldmann, CEO of Homebase, expressed concerns about the impact of the heat waves on small businesses, stating, “Main Street is feeling the heat. It may just be too hot for customers and businesses alike.” The sentiment is shared by many business owners and employees who have witnessed firsthand the impact of the extreme heat.
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Danah Lee, an employee at Willie’s Taco Joint in Phoenix, experienced the consequences of the heat wave. Phoenix recorded the longest consecutive streak of temperatures over 110 degrees Fahrenheit in history earlier in July. Lee noted a significant decrease in foot traffic, and despite the restaurant’s efforts to keep the indoor dining areas cool, temperatures consistently reached 95 degrees or above. The extreme heat not only affected the business but also made it challenging for the team to work long hours. To ensure their safety, more people were scheduled to work shorter shifts, preventing heat exhaustion.
In labor-intensive outdoor industries, some employers have chosen to shift workers’ hours earlier in the day while temperatures are relatively lower, instead of cutting working hours altogether. Travis Parsons, director of occupational safety and health for the Laborers International Union of North America, emphasized the importance of such accommodations. However, without federal oversight, some states do not require contractors to make these adjustments, leaving workers vulnerable to heat-related injuries.
Parsons acknowledged the prominence of the issue and expressed concern, stating, “It’s more relevant now than ever. It’s always been an issue in my 20-plus years, but it seems to be really in the spotlight.”
The record-breaking heat waves that swept the nation in July have had a significant impact on small businesses and their employees. From reduced working hours and customer traffic to concerns about worker safety, small businesses are feeling the burn. It is crucial for business owners, policymakers, and organizations to come together to address these challenges and find solutions to protect both businesses and employees during extreme weather conditions.
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