Last month, fewer small business owners had job openings they couldn’t fill, but many still need more workers. The June report (nfib optimism index) from the National Federation of Independent Business (NFIB) showed that 37% of small businesses had job openings they couldn’t fill, down five points from May. Just over half of the owners said there were few or no qualified applicants for their jobs. This is about Job Openings Remain High for Small Businesses.
Efforts to Attract Employees:
“This summer, small business owners are still trying to hire and find qualified employees,” said NFIB Chief Economist Bill Dunkelberg. “Many small businesses still have job openings they can’t fill. However, owners are offering higher pay to attract and keep employees.”
Main Concerns for Business Owners:
Labor cost was the top concern for 11% of business owners, slightly lower than the 13% reported in December 2021. About 20% said the quality of labor was their main issue, but this has improved over the last six months.
Sectors with the Most Job Openings:
Job openings were highest in construction, transportation, and retail sectors. The NFIB report is based on a survey of its member firms, with half of those in construction and transportation reporting job openings last month.
Overall Job Market Trends on nfib optimism index:
The government’s monthly jobs report showed a slight slowdown in the overall job market. U.S. employers added 206,000 jobs last month, down from 218,000 the month before, and below the average monthly gain of 220,000 over the past year. The Labor Department also revised April and May job gains lower, resulting in 111,000 fewer jobs than previously reported.
ICYMI: The #NFIB June jobs report found openings on Main Street fell to a seasonally adjusted 37%, yet #smallbusiness owners continue to struggle to find qualified workers.
— NFIB (@NFIB) July 7, 2024
Learn more from the report:https://t.co/bpWsKcMSXC pic.twitter.com/4CzhiSP4uR
Job Growth and Economic Impact:
Labor economist Aaron Sojourner noted that the economy has added 2.61 million jobs over the past year, a faster growth rate than any year from 2016 to 2020, though slower than recent years. Sojourner said job growth is slowing but remains strong despite efforts by the Federal Reserve to control inflation.
High prices and borrowing costs have tightened Americans’ household budgets. The Fed had planned several rate cuts this year but postponed them due to persistent inflation.
Future Plans for Interest Rates:
The latest consumer price index showed annual inflation at 3.3%, down from 9.1% in June 2022. The personal consumption expenditures price index, which tracks actual spending, showed a 2.6% annual increase. Both are still above the Fed’s 2% target. The Fed still plans to cut interest rates this year but is undecided if it will be one or two cuts.
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