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Small Business Job Creation Remains Stagnant

Small Business Job Creation Remains Stagnant Credit: Dreamstime

The most recent survey of job creation among small business finds a stagnant situation in June. The survey, planned for release July 13, is from the National Federation of Independent Business (NFIB).

"Job creation still hasn't crossed the 0 line in the small business sector," said William C. Dunkelberg, NFIB chief economist. "Since January 2008, the seasonally adjusted average change in employment per firm has been negative or 0, with a seasonally adjusted loss of negative 0.3 workers per firm reported in June for the prior three month period."

Among the survey results to be released:

  • Most firms did not change employment.
  • 5 percent of firms (down 3 points from May) increased average employment by 3.4 employees.
  • 15 percent (down 5 points) reduced their workforces by an average of 3.3 workers.

"The number of small business owners with unfilled (hard to fill) openings was unchanged at 9 percent of all firms, historically a weak showing," Dunkelberg said.

Here's what small businesses, on average, plan to do over the next three months:

  • 8 percent plan to reduce employment (up one point).
  • 10 percent plan to create new jobs (down four points).

This would yield a seasonally adjusted net 1 percent of owners planning to create new jobs , unchanged from May and the second positive reading in 20 months.

"Overall, the job creation picture is still bleak," Dunkelberg said. "Weak sales and uncertainty about the future continue to hold back any commitments to growth, hiring or capital spending.  Job creation plans have been running far below comparable quarters in the recovery periods following two other major recessions."