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Extreme heat cuts into US small business

Thursday, 3 August 2023



ARIZONA, Aug 02 (Reuters): Record-breaking heat waves across the US forced small businesses to close early in July, according to a report released on Tuesday, and reduced paid working hours for employees as dangerous temperatures reshape consumer behavior.
Hundreds of millions Americans dealt with extreme heat advisories in the past two weeks, as temperatures across the South and Southwest hit historic highs. These hazardous conditions have kept consumers inside and forced small businesses to close early - cutting into paid hours for employees - according to a report by the small business payroll company Homebase.
Nationally, small business employees worked 0.9 per cent fewer hours in the first two weeks of July compared with the last two weeks of June - a standard seasonal change that is typical of summer months - the report said. But slowdowns were up to five-and-a-half times higher in cities that experienced the worst of the heat wave, highlighting the impact of high temperatures on local economies.
Small business employees in New Orleans and Memphis, for example, were on the clock 5.7 per cent and 5.1 per cent less, respectively, than they were in June as business owners shorten hours to adjust for fewer customers and try to protect employees from too much heat exposure. Memphis clocked 11 days with temperatures at 90 degrees Fahrenheit (32 degrees Celsius) or above in July, while New Orleans recorded 26 days in the 90s.