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As North Texans tighten their wallets, small business owners say the slowdown is a warning sign for the economy. In a consumer-driven economy, the evidence is mounting that consumers are worried — and that's not a good sign. Call it the economic equivalent of a "canary in the mine." "When the economy is like it is and what's going on with the government, people stop spending because they're worried and they're scared," warns Aimee Hughes. Hughes owns several retail stores, including Bella & Braun in Bishop Arts. "And so, what does that mean? If they stop spending, that means we have less income coming in," she said. "I have to start looking at the schedule and start cutting people down." Other retailers, too, are seeing a shift. "I think it's more than just the government shutdown," shares Cody Ellison, Bishop Street Market. "I think that the overall census right now with consumers, because I'm here with my boots on the ground every day, I think that job security just isn't what it has been." More jobs lost in the U.S. than during the pandemic: report According to outplacement firm Challenger, Gray and Christmas, employers have announced more than a million job cuts this year: household names like Amazon, Facebook, and UPS are handing out pink slips. More American jobs have been lost this year than even during the pandemic. "Job loss is a real risk for most families," says certified financial planner Bill Dendy, "and that can be disastrous if we don't have emergency reserves in place." Dendy suggests that families have hard conversations about needs versus wants. Then, he says, build an emergency fund to cover critical expenses in case of job loss. He also warns families against buying "bigger and new" too soon, and get help to improve financial literacy. "We see a lot of companies now that are saying they're going to right-size or downsize," says Dendy. "We should all be paying attention to this."
