NFIB Small Business Jobs Report
The NFIB Research Foundation has collected Small Business Economic Trends data with quarterly surveys since 1974 and monthly surveys since 1986. Survey respondents are drawn from NFIB’s membership. The survey was conducted in July 2017 and reflects a random sample of 10,000 small-business owners/members.
Small Business Job Activity Strong in July
60 percent hired or tried to hire; 52 percent had trouble finding qualified workers
NFIB’s chief economist William C. Dunkelberg, issued the following comments on NFIB’s July 2017 Jobs Report:
Overall job creation among small businesses increased in July, powered by a four-point gain in the seasonally adjusted net percentage of owners who plan to create new jobs, according to the montly National Federation of Independent Business (NFIB) Jobs Report, released today.
“Small business owners are investing their money in new jobs and we know small business is where the jobs are” said NFIB President and CEO Juanita Duggan. “That’s great news and we hope it continues.”
A seasonally adjusted net 19 percent of owners planned to create new jobs in July, a four-point jump from the previous month, with higher levels not seen since December of 1999. Eighty seven percent of owners who hired or tried to hire reported difficulty finding qualified workers. Nineteen percent of owners cited the difficulty of finding qualified workers as their single most important problem, up four points from June.
“The tight labor market is driving up costs for small employers,” said NFIB Chief Economist Bill Dunkelberg. “More than a quarter of all owners reported raising wages in July, and the pressure was especially high in the contruction industry.”
A separate NFIB survey completed last month identifies the reasons for which qualified workers are hard to find. The most commonly reported problem is lack of specific skills. Other reasons include weak work history, poor social skills, and unrealistic wage expectations.
“Thirty five percent of owners reported jobs they couldn’t fill in July,” said Dunkelberg. “That’s a five-point increase from the previous month and the highest reading since 2001. The tight labor market is good for employees, but it’s becoming a problem for businesses that can’t find enough workers to satisfy customer demand.”
The full Small Business Economic Trends report will be released on Tuesday, August 8th
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