MIAMI -- As the economy continues to weaken, small businesses across South Florida are downsizing and adding to the state's unemployment rate.

Hair extensions are the main attraction at Sarah Jane Spa and Salon in Miami. But with costs starting at $225, it’s a luxury item many South Floridians are forgoing these days.

“Obviously, this is something people cut right away. They need it, but they have to cut," said salon owner Sarah Jane.

With less business, Sarah Jane has been forced to let go of several workers the last few months. Employment agency Workforce One told Local 10 that hundreds of small businesses just like the salon are downsizing or closing up shop completely.

That’s what happened to Karyn Leopold. She was fired a few months ago. Since then, she’s been at Workforce One, applying for jobs every day.

“I’m not just taking anything. I’m waiting it out," Leopold said.

Florida’s unemployment rate has increased to 6.5 percent, a 0.3 percent increase from last month. Experts said the numbers could continue to rise.

But there are a few jobs available, mainly in the health care and education fields.

“You just have to be persistent, to come in. You have to make looking for a job a job," Workforce One Vice President Mason Jackson told Local 10.