Small Business Jobs Outlook Turns Gloomy in June

Date: July 12, 2016 Last Edit: July 20, 2016

FOR
IMMEDIATE RELEASE

National Federation of Independent Business/California
Contact: Shawn Lewis (916) 342-9315;
[email protected]

Small Business Jobs Outlook Turns Gloomy
in June
NFIB
data shows that qualified workers are scarce


SACRAMENTO, Calif., July
12, 2016 –
The small
business employment outlook weakened in June as job creation turned negative,
hiring plans slowed, compensation slipped, and jobs openings remained unfilled,
according to the
Jobs Report released
today by the National Federation of Independent Business (NFIB).

“Small business hiring has been mostly stagnant throughout 2016 with
little movement in either direction from month to month,” said NFIB Chief
Economist William C. Dunkelberg
. “Overall in June, the demand for labor
weakened. Hopefully, with owners increasing compensation more people will be
attracted back into the workforce and owners can find the labor that they have
been searching for.” 

Reported job creation during the month of June fell -0.17 workers per
firm, which brings the employment outlook back into negative territory. 
Hiring activity among small business owners decreased, and fewer owners said
that they plan to create jobs. The use of temporary employment also declined,
which is consistent with the overall slip in employment and hiring. 

Job openings are at expansion high levels, but many small business owners
still cite finding qualified workers as their top “Single Most Important
Business Problem.” Consequently, the percent of owners reporting raising
compensation held at a strong reading even though it dropped slightly. 

NFIB/CA
State Executive Director Tom Scott
said that the regulatory environment, both at the
federal and state level, is not conducive to an improved employment outlook for
the small business sector. 

“Policymakers should pause for a moment when we see recurring themes in
our monthly jobs report which result in steadily declining small business
optimism,” Scott said. “Although job openings may be there, small
businesses can’t find qualified workers, in addition to the fact they are
hesitant to invest in expansion with so much volatility in DC and Sacramento.”

NFIB’s June Jobs Report is based on the NFIB monthly Small Business Economic Trends survey. The survey
was conducted in June and reflects the response of 735 small businesses.

###


For more than 70 years, the National
Federation of Independent Business has been the Voice of Small Business, taking
the message from Main Street to the halls of Congress and all 50 state
legislatures. NFIB has 350,000 dues-paying members nationally, with over 22,000
in California. NFIB annually surveys its members on state and federal issues
vital to their survival as America’s economic engine and biggest creator of
jobs. To learn more visit
www.NFIB.com/california

Related Content: Small Business News | California | Economy

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