The NFIB's Chief Economist William Dunkelberg released this statement on small business job growth:
"Small-business owners managed to do some solid, but not spectacular, hiring in July. Sixteen percent reported increasing employment an average of 4 workers per firm, compared to 11 percent who reported workforce reductions averaging 2.4 workers. For all firms, this was an average increase of 0.4 employees per firm. Seasonally adjusted, the numbers are less impressive, with 14 percent increasing employment by 3.7 employees per firm, 13 percent reducing employment by 2.6 workers and, including all firms, a gain of 0.1 employees per firm. In construction, 20 percent increased the size of their workforce an average of 4.2 workers, and 12 percent cut employment by an average of 3.3 workers, producing an increase for all construction firms of 0.4 workers per firm (not seasonally adjusted)."Twenty-three percent (seasonally adjusted) reported unfilled job openings, down three points from June. The decline in the percent of firms with unfilled openings anticipates an increase in the unemployment rate in the months to come. Thirteen percent of the owners reported that the availability of qualified labor was their top business problem, unchanged from June. Only taxes and the cost and availability of insurance received more votes for the number one business problem. No one likes high energy prices, but for service sector firms, this is not likely to be a top problem.
"Over the next three months, 17 percent plan to create new jobs (down three points), and 10 percent plan workforce reductions (up three points), yielding a seasonally adjusted net 13 percent of owners planning to create new jobs -- up a point from June. Fifty-four percent reported hiring or trying to hire new workers, 80 percent reported 'few or no qualified applicants' for their positions.
"That's a tight labor market," Dunkelberg concluded.
Since small business employs about 50% of all American workers, we need to keep our eyes on these trends.
