The economy remains strong for small businesses as the latest National Federation of Independent Business (NFIB) index showed continue signs of high confidence from small business owners. The small business optimism index “fell slightly in June, coming in at 107.2 versus 107.8 in May.” Despite the drop, June’s result “extends a run of 19 consecutive months above 100, a very high level by historical comparison.”
Small business owners see now as a good time to expand, hire new employees, and generate revenue versus 2016. “The net percentage of respondents expecting better economic conditions (“better” minus “worse”) came in at 33, down from 37 in May but quite high compared to negative numbers from 2016.”
When looking closer at job openings, Seeking Alpha reveals that current demand is way above supply with “the percentage of firms reporting few or no qualified applicants for job openings was a record high 55 percent in June, up from 48 percent in May.” Overall the job market has been good for companies outside of small businesses as according to the Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics, there has been “a slight dip in job openings in May from a record-high level in April, providing more support to a positive outlook for the labor market. The industries with the largest number of openings were professional and business services (1.190 million), healthcare (1.119 million), accommodations and food service (817,000), and retail (776,000).”
With such a high demand of workers, many expect an increase in wage to come soon. So far this has not materialized however as “increases have remained quite moderate. Still, attracting and retaining qualified labor is likely to remain a critical issue for business in the immediate future.”
This news comes after recent economists have projected an economic decline to hit global markets in 2019 to 2020. Time will tell if this does in fact happen, but for now a strong economy is good business for everyone involved.