More owners may be utilizing small business loans to expand their staffs, as recent data shows employment is on the rise in the U.S.
Figures from the Bureau of Labor Statistics show total nonfarm payroll employment rose by 248,000 jobs during September, leading the unemployment rate to decline to 5.9 percent. Among the sectors to see significant employment gains were professional and business services, retail trade and health care.
“In September, the unemployment rate declined by 0.2 percentage point to 5.9 percent,” the BLS stated in a press release. “The number of unemployed persons decreased by 329,000 to 9.3 million. Over the year, the unemployment rate and the number of unemployed persons were down by 1.3 percentage points and 1.9 million, respectively.”
This brings the jobless rate down to a six-year low – great news for the overall economic situation in the U.S.
Additionally, the number of hours employees are working also increased.
“In September, the average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.6 hours,” the BLS continued. “The manufacturing workweek was unchanged at 40.9 hours, and factory overtime edged up by 0.1 hour to 3.5 hours.”
These gains are likely to continue, as the latest PNC Economic Outlook Survey found that more small and midsized businesses are looking to hire on more workers. In fact, of business that plan to grow their workforces, 20 percent plan to add full-time employees, up from 16 percent during the previous year. Sixty-one percent plan to hire one to five employees, a number PNC Chief Economist Stuart Hoffman described as “sizable, given that three-quarters of these businesses have fewer than 50 full-time employees.”
Obtaining the necessary working capital
Together with reports showing consumer confidence is increasing, these positive jobs numbers should act as a signal to business owners that now may be the time to put expansion strategies into gear.
Any type of expansion, whether it involves more employees or new equipment, will require working capital. That’s why a small business working capital loan could be the right solution for small and midsized business owners.
The right working capital loan can provide much-needed funding with no pledge of personal assets and simple, straightforward paperwork. Business owners can also explore their options with renewable working capital loans to ensure they have the money they need for expansion efforts for the long haul.
