A competing survey came up with similar results, interviewing 4,739 small business owners, conducted from late June through mid-July.

This is despite 51 percent of small employers still trying to find workers to fill important posts, but the shift in the labor situation this summer has made things more difficult.

The report, released July 21, followed the latest U.S. Bureau of Labor Statistics data showed consumer prices rose 9.1 percent in the past year, the highest in more than 40 years. Meanwhile, the BLS producer price index rose nearly the highest ever at 11.3 percent in the previous 12 months.

"This represents a significant hiring shift, and is largely a reaction to mounting labor costs, skyrocketing inflation, fears of a recession, and rising interest rates," said Alignable.

The survey found that 4 percent of small businesses were planning to lay off staff and that "some employers noted that they have learned to live without the extra staff, making other changes and/or working longer hours themselves."

This includes 5 percent of firms in real estate and the automotive industry and 3 percent in retail.

Too Expensive to Hire

Hiring freezes vary across industries and state to state, with 66 percent of gym owners, 63 percent of real estate firms, 38 percent of restaurants, 58 percent of transportation companies, 55 percent of automakers, and 55 percent of retailers reporting a halt.

Some states have more issues with hiring compared to others, while other small businesses are being more selective in trying to hire the right people for the positions, but the majority of business owners believe that it is too expensive to hire right now.