It’s still well below historical levels for periods of growth. Twenty-eight percent (28%) reported plans to make capital outlays, which reflects a 1-point gain from April. It’s a significant structural problem in the economy that policymakers will have to watch.” They can’t keep up with customer demand because the labor pool isn’t producing enough qualified workers. But it also means a lot of small business owners are short-handed. “It’s forcing small business owners to increase compensation, which we’re seeing in this data, to attract new workers and keep the ones they have. “The tight labor market has been a persistent problem for small business owners for the past several months, and the problem appears to be getting worse,” said NFIB Chief Economist Bill Dunkelberg. Further, 19% of all owners in the survey said finding qualified workers was their top concern, making it the second-biggest problem for small business. Still, 86% of owners who said they tried to hire reported that to be an obstacle. Labor Secretary Jim Acosta gave a press conference on Monday to discuss the skills gap and the Trump Administration’s promotion and expansion of workers’ apprenticeship programs. Fifteen percent (15%) of owners reported hiring 3 workers per firm, while just 9% reported cutting 2.3 workers per firm.Ī solid majority of owners, 59%, said they were either hiring or trying to hire in the month of May, though 51% said they found few or no qualified workers. This is a policy-driven phenomenon.”įive of the Index components posted a gain, four declined, and one remained unchanged. Hiring activity in May was near the highest levels in the 43-year history of the Index with average employment change per firm at 0.34. “Small business owners are highly encouraged by the President’s regulatory reform agenda, and they remain optimistic there will be tax reform and health-care reform. Economists anticipate as many as seven rate hikes this year.“The remarkable surge in optimism that began last year right after the election shows no signs of slowing down” said NFIB President and CEO Juanita Duggan. The Federal Reserve is expected to start raising interest rates next month by at least 25 basis points to tame high inflation. Price hikes were most frequent in wholesale, manufacturing, retail and construction industries. About 23% complained about labor quality.įaced with rising labor costs, the share of small businesses raising average selling prices jumped 4 points to 61%, the highest reading since the fourth quarter of 1974. That corroborates to a surge in measures of wage growth tracked by the government.Ībout 27% of small businesses said they planned to increase compensation in the next three months, down 5 points from December, but still historically high.Įleven percent said labor costs were their top business problem, down 2 points from December's 48-year record high reading. That was the highest reading in 48 years and was up 2 points from December.
The NFIB survey showed half of the 1,504 small businesses who participated in the poll reporting raising compensation. There were a near record 10.9 million job openings at the end of December. The pandemic, now in its third year, has also disrupted labor supply, making it difficult for goods to move from factories to consumers. Snarled supply chains as the global economy rebounds from the COVID-19 pandemic, fueled by massive stimulus from governments, have unleashed inflation.
0 kommentar(er)
