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 December 2016 and reflects a random sample of 10,000 small-business owners/members.
NFIB Jobs Report: Plans to Hire Hits 9-year High
Small business job creation flat in December but signs point to future growth, according to National Federation of Independent Business (NFIB) jobs survey
NFIB’s chief economist William C. Dunkelberg, issued the following comments on NFIB’s December 2016 Jobs Report:
The largest percentage of small business owners since 2007 reported plans to hire in December, according to the NFIB December Jobs Report, released today.
“After years of ball-and-chain regulations, high taxes, and spiraling health insurance costs, small business owners are seeing a light at the end of the tunnel,” said NFIB President and CEO Juanita Duggan. “President-elect Trump has staked out policies that small business owners favor, and he has backed them up with impressive cabinet nominations.”
The December Jobs Report posted a slight gain of 0.01 average workers per firm. However, 16 percent of small firms said they plan to create new jobs, up one point since last month and the highest reading since 2007.
“With promises of lower taxes and less regulation, small business owners are becoming more enthusiastic about investing in their business,” said NFIB Chief Economist William Dunkelberg. “The labor market is tightening, however, which makes it more difficult for employers to find qualified workers. Until the employment participation rate increases with more people trying to reenter the workforce, that will be a short-term challenge for small businesses.”
Fifty-one percent of small employers reported hiring or trying to hire, down seven points from November, but 44 percent reported few or no qualified applicants for the positions they were trying to fill.
Dunkelberg noted that the five-point spike in owners who are increasing compensation to 26 percent is also consistent with a tightening labor market.
“This month’s data are more positive signs for the economy,” said Duggan. “Small business, which is the traditional engine of job growth, is poised to lead what could be a significant economic expansion.”
The full Small Business Economic Trends report will be released on Tuesday, January 10th
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