Rising healthcare costs are dampening U.S. businesses’ 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, 57% said they are likely to reduce their employees' coverage in the future. The financial services company’s survey of 1,041 small- and mid-sized business owners and senior decision-makers across the United States also found that healthcare reform is the number-one 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. Sixty-six percent stated that rising healthcare costs are having a moderate to significant "adverse impact" on salary increases and 59% said healthcare costs were having the same effect on hiring full-time employees.
