NFIB Study Shows Slow Small Business Hiring
According to the National Federation of Independent Business (NFIB), employment fell in the small business sector for the third month in a row. The NFIB announced in a report that small businesses experienced a negative 0.11 average change in employment in July from the month before.
The study also found that 9 percent of small business owners brought on an average of 2.9 workers per company over the past months. The majority of small business owners – 79 percent – said their staff numbers stayed the same, while 12 percent of respondents said they had to let employees go.
The results of the NFIB study contradict statistics presented by the government and by payroll processor ADP, Reuters reported. ADP found that private companies added 200,000 jobs to the economy in July, and Reuters expects the federal government to announce that 184,000 jobs were added last month, going on to forecast that the government numbers will show a decline from June, when 195,000 positions were filled.
The NFIB survey found that only half of small business owners have tried to hire anyone in the last three months, and those who were looking had a hard time finding qualified candidates. The organization attributes the sluggish growth in hiring to a shaky economy and slow recovery from the recession.
The economy grew by 1.7 percent during second quarter 2013, the Bureau of Economic Analysis found. The Washington Post reported that increase was slightly up from the previous quarter’s growth, but is still lagging behind previous economic recoveries.
Small business owners who cut jobs often do so as a last resort to stay afloat. If a small business owner needs help making ends meet, they can come to National Funding for a merchant cash advance or for assistance with getting a small business loan.