Thursday, January 05, 2012

Survey: Small Business Owners report small decline in employment, hiring plans positive

by Bill McBride on 1/05/2012 03:51:00 PM

Note: NFIB’s monthly small business survey for December will be released on Tuesday, January 10, 2012.

From the National Federation of Independent Business (NFIB): NFIB Jobs Statement: No Rally in Jobs at Close of 2011, but Small Business is Cautiously Optimistic about 2012

Chief economist for the National Federation of Independent Business (NFIB) William C. Dunkelberg, issued the following statement on the December job numbers, based on NFIB’s monthly economic survey that will be released on Tuesday, January 10, 2012. ...

Unfortunately, December’s jobs numbers fizzled, with the net change in employment per firm turning negative again; small businesses lost an average .15 workers per firm. ... The good news is that the number of owners cutting jobs has ‘normalized’. In the past several months, reports of those cutting workers have been at the lowest levels since the recession started in December 2007. ... Over the next three months ... a seasonally adjusted net 6 percent of owners planning to create new jobs, a 1 point decline but still one of the strongest readings since September 2008.
Note: Small businesses have a larger percentage of real estate and retail related companies than the overall economy.

Small Business Hiring Plans Here is a graph of the net hiring plans for the next three months since 1986.

Hiring plans declined slightly in December, but the trend is up.

It is no surprise that small businesses are struggling due to the high concentration of real estate related companies in the survey. This is another slightly discouraging survey before the BLS report tomorrow.

Earlier:
Reis: Apartment Vacancy Rate falls to 5.2% in Q4, Lowest since 2001
ADP: Private Employment increased 325,000 in December
Weekly Initial Unemployment Claims decline to 372,000
ISM Non-Manufacturing Index indicates slightly faster expansion in December
Employment Situation Preview: Improved, but still not strong