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Free AccessMNI POLICY: More Small US Businesses Expect to Hire Soon: NFIB
Roughly 21% of U.S. small businesses said they planned to create new jobs in the next three months, up from 18% of businesses in July and an unprecedented 1% in April at the onset of the Covid-19 pandemic, according to survey results published Thursday by the National Federation of Independent Business.
"The small business labor market is recovering and moving in the right direction," NFIB Chief Economist Bill Dunkelberg said in a statement alongside the small business group's monthly jobs report. "However, there is still uncertainty and many small businesses are counting on additional financial assistance."
The Paycheck Protection Program that kept many small businesses alive through the summer expired on Aug. 8 and the outlook for forthcoming federal aid is uncertain as discussions between Democratic and Republican leaders in Congress remain stuck on a handful of key provisions.
Roughly 8% of small businesses said they increased employment by an average of 4.5 workers per firm in August. About 20% reduced staff by an average of 2.3 workers per firm, according to the report.
The construction industry continues to lead job growth among small businesses, though business owners reported trouble finding skilled employees last month. The service sector "remains the missing link and is the key to stronger growth going forward," according to NFIB.
More than half of business owners said they had hired more workers or had tried to hire new employees in August, but 88% said there were either few or no qualified applicants.
More than 30% of business owners reported having job openings they were unable to fill in August, with 31% reporting openings for skilled workers and 12% reporting openings for unskilled labor.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.