Labor market woes: US small businesses scale back hiring plans
JPMorgan Chase Banking Business CEO Ben Walter discusses how small business optimism can increase on The Claman Countdown.
U.S. small businesses' hiring plans fell last month to the lowest level since the early stages of the COVID pandemic even as the labor market remains tight, according to the latest jobs report from the National Federation of Independent Business (NFIB).
The NFIB's report found that just 11% of small businesses surveyed in March planned to create new jobs in the next three months, down one point from February and the lowest level since May 2020. The decline brings the index below its historic average of 11.8% and the NFIB noted in its report that, «Job creation plans are now below what would be typical in a strong growth economy.»
More than half of small business owners, 56%, reported hiring or trying to hire in March – a metric that was unchanged from February and prompted the NFIB to note that «employment activity remains solid, although waning from peak levels.»
«Job openings on Main Street are now in line with the levels before the pandemic,» NFIB Chief Economist Bill Dunkelberg said in a press release. «Even with the slowdown in openings, the small business labor market remains tight, and owners continue to compete to retain and recruit employees.»
WHAT TO EXPECT FROM THE MARCH JOBS REPORT
The National Federation of Independent Business found that small businesses scaled back their hiring plans last month. (REUTERS/Brian Snyder / Reuters Photos)
The competitive labor market prompted a net 38% of small businesses to report raising compensation, an increase of three percentage points from February which was the lowest reading since May 2021.
Nearly one-third of small business owners, or 31%,
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