Inflation Remains Top Concern for Main Street as Optimism Index Improves

July 16, 2024

Small business had solid employment hiring plans but were overall unsuccessful in finding additional workers in June

Inflation Remains Top Concern for Main Street as Optimism Index Improves

What it means: Although optimism among small business owners increased in June to 91.5, inflation remains the top problem for business owners. The Optimism Index reached its highest point since December 2023 at 91.5. Historically high levels of small business owners continue to raise compensation to attract and retain employees. Our take: Hiring plans remain elevated but small business owners were unsuccessful overall in finding additional workers in June. Compensation pressures have contributed to inflation remaining high.

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Halfway through 2024, the NFIB Small Business Economic Trends (SBET) report revealed that even with the Optimism Index increasing to 91.5, the highest point since December 2023, small business owners remain pessimistic about future conditions. Historically high levels of small business owners continue to raise employee compensation to attract and retain employees in a tight labor market. Hiring plans remain elevated, but small business owners were unsuccessful overall in finding additional workers in June. Thirty-seven percent of small businesses struggled to fill open positions, down five points from May. The full Small Business Economic Trends report and NFIB Jobs Report are available for further analysis.

Topics:

Economy

Labor

Research

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