For the past few months, NFIB’s Small Business Optimism Index has shown that small business owners are cautiously excited about the economy and future prospects. That optimism may be leading to action, according to NFIB’s May 2017 Jobs Report, which shows an average employment change of 0.34 workers per firm.
“Firms are adding workers, creating new positions, and increasing compensation to attract better applicants and keep their best performers,” said NFIB Chief Economist Bill Dunkelberg. “If there is a dark cloud in the data, it is that there aren’t enough qualified workers to fill the available jobs. That puts a strain on small employers.”
Thirty-four percent of owners reported open positions, the highest level reported since 2001. Eighteen percent of firms also reported currently having hiring plans. The big issue is still finding qualified workers, with 51 percent of firms finding few or “none” for the positions they have open.
James Freeman’s column in The Wall Street Journal examined the data and believes the White House’s regulatory rollback has been a key player in small businesses hiring.
“This column believes that major tax relief is essential for sustained faster economic growth,” wrote Freeman. “But the encouraging May employment report from NFIB suggests that simply ending the Obama regulatory war on business is paying some early dividends.”
Now that small business is acting on that optimism, the next hurdle to overcome to maintain that momentum is tax reform.
“The current tax code strongly favors large corporations over small businesses,” said NFIB’s president and CEO Juanita Duggan in a statement. “Five of the top 10 concerns among small business owners are related to taxes. The tax system is a major burden for small businesses and an impediment to economic growth. Fixing that system must be an urgent priority for Congress and the White House.
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