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 August and reflects the responses of 598 sampled NFIB members.
Sept. 2014 Small Business Jobs Statement from NFIB’s Chief Economist:
Ho-Hum Hiring in the Small Business Sector
NFIB’s chief economist William C. Dunkelberg, issued the following statement on the August 2014 job numbers:
“NFIB owners increased employment by an average of 0.02 workers per firm in August (seasonally adjusted), the 11th positive month in a row but basically a “zero” net gain. Small business owners aren’t adding much to the job growth statistics. Seasonally adjusted, 13 percent of the owners (unchanged) reported adding an average of 3.4 workers per firm over the past few months. Offsetting that, 9 percent reduced employment (down 3 points) an average of 3.2 workers, producing the seasonally adjusted net gain of 0.02 workers per firm overall, hardly different from flat even, but still positive. The large reduction in the percent of owners reporting reductions in employment is a welcome development.
“The remaining 78 percent of owners made no net change in employment. Fifty-six percent of the owners hired or tried to hire in the last three months and 46 percent reported few or no qualified applicants for open positions.
“Twenty-six percent of all owners reported job openings they could not fill in the current period, up 2 points, suggesting no change or a modest reduction in the unemployment rate. Sixteen percent reported using temporary workers, up a point and up 2 points over the past two months.
“Hiring plans faded however, suggesting weaker job creation ahead. The net percent of owners planning to increase employment fell 3 points to a seasonally adjusted net 10 percent. Historically, this is not associated with periods of strong employment growth.
“The economy grew at a 1.1 percent rate in the first half, so not a lot of new workers were needed to produce such a small gain in output. July and August have not been gangbuster months either, so the need for more workers in general is not a pressing matter for small business owners. Outside of healthcare where the government has a heavy hand, it is hard to see where there might be a lot of strength in hiring.”
Results of the full survey will be released on Tuesday, September 9, 2014.