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 June 2016 and reflects a random sample of 10,000 small-business owners/members.
Small Business Jobs Outlook Turns Gloomy in June
NFIB data shows that qualified workers are scarce
NFIB’s chief economist William C. Dunkelberg, issued the following comments on NFIB’s June 2016 Jobs Report:
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 President and CEO Juanita Duggan said that the regulatory environment, especially at the federal level, is not conducive to an improved employment outlook in the small business sector.
“Each month our survey shows that small business owners are trying to hire qualified workers,” Duggan said. “The job openings are there, but owners are not going to invest in new employment when labor costs are becoming insurmountable, and the political climate is wildly uncertain.”
Results of the full survey will be released on Tuesday, July 12th.
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