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 2015 and reflects the responses of 620 sampled NFIB members.
Small Business Hiring Disappointing, but Not Disastrous in June
NFIB jobs report shows small business job creation declined for the first time in five months
NFIB’s chief economist William C. Dunkelberg, issued the following comments on NFIB’s June 2015 Jobs Report:
“Small businesses took a breather from hiring last month after a string of five solid, positive months. Growth in the first few months of the year was lousy and big firms are beginning to show signs of wear and tear, layoffs are being announced and profits are fading.
“June’s employment readings are definitely a setback. They set the stage for an increase in the unemployment rate.
“Solid employment growth is not consistent with poor growth in output. The second quarter will certainly top first quarter’s GDP growth, but it will still feel ‘sub par.’ Job growth won’t stack up to May, but will likely top 200,000.”
Small businesses took a breather from job creation in June after a string of 5 solid, positive months. On balance, owners added a net -0.01 workers per firm in recent months, essentially zero. Ten percent reported increasing employment an average of 3.2 workers per firm while 12 percent reported reducing employment an average of 3.3 workers per firm.
Fifty-two percent reported hiring or trying to hire (down 3 points), but 44 percent (85 percent of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill. Eighteen percent reported using temporary workers, up 5 points.
Twenty-four percent of all owners reported job openings they could not fill in the current period, down 5 points. June’s reading is a set-back after reaching the highest level since April 2006 in both February and May of this year. Historically correlated 0.9 with the unemployment rate, the June reading sets the stage for an increase in the unemployment rate.
A net 9 percent plan to create new jobs, down 3 points and the lowest reading since September, 2014. Not seasonally adjusted, 16 percent plan to increase employment at their firm (down 6 points), and 6 percent plan reductions (up 2 points).
Results of the full survey will be released on Tuesday, July 14, 2015.