After slow summer readings, NFIB’s August jobs report shows improvement
Washington, D.C. (September 3, 2015) – The National Federation of Independent Business (NFIB) Chief Economist William C. Dunkelberg issued the following comments regarding the August Jobs Report. The findings are based on the NFIB monthly Small Business Economic Trends survey. The survey was conducted in August and reflects the response of 656 small businesses:
“Job creation picked up in August as the economy left a lousy first quarter behind,” William Dunkelberg said. “Growth for this year is still running at the same sluggish 2 percent pace, but overall August showed some large improvements from July.”
Business owners added a net 0.13 workers per firm last month. Eighteen percent, up 6 points from July, reported increasing employment an average of 3.0 workers per firm while 8 percent reported reducing employment an average of 3.4 workers per firm, down 4 points. Fifty-six percent of owners were hiring or trying to hire, but 48 percent reported few or no qualified applicants for the positions they were trying to fill. Twenty-nine percent of all owners reported job openings they could not fill in the current period regaining the highest reading for this year. A net 13 percent plan to create new jobs, up 1 point after a 3 point gain last month. And 15 percent reported using temporary workers, down 1 point from last month.
A seasonally adjusted net 23 percent of owners reported raising worker compensation, unchanged and 2 points below the expansion high reading reached in January and May. The net percent planning to increase compensation fell 2 points to a net 13 percent but still historically strong for this recovery.
Job numbers should come in at 250,000 or better with the potential for a reduction in the unemployment rate unless labor force participation picks up substantially,” Dunkelberg said. “That being said, the spread between rising labor costs and increases in prices is huge and cannot continue without substantial damage to profitability.”
Dunkelberg’s full statement and analysis can be found here. For an interview please contact Kelly Klass at609-713-4243 or [email protected]