Small Business Hiring Stagnant, Slows Overall Job Growth

Small business hiring – one of the primary components of the overall U.S. employment picture – remained stagnant in April, according to the National Federal of Independent Business.
The overall U.S. employment report came in at a disappointing 115,000 jobs added to payrolls in April, well below the projected 170,000. The unemployment rate slipped to 8.1 percent in April from 8.2 percent in March.
In its own report for April, the NFIB said more firms cut employment than added jobs (14 percent vs. 12 percent). Average change in employment per firm was +0.1, down from March – but at least positive.
On the more positive side, hard-to-fill job openings improved and job creation plans recovered from a plunge in March, the NFIB said. As more jobs are created, the more candidates companies are going to have to sift through in order to make their decision. If you have an upcoming interview, make sure you are prepared by taking a look at a site like You want to make sure you perform to the best of your ability when it comes to the interview, in the hopes of getting the job you’re after.
“Overall, the April NFIB survey anticipates some strength in the job creation number with little change in the unemployment rate,” said William C. Dunkelberg, chief economist for the NFIB. “With job creation plans rebounding, the outlook is a bit more optimistic for the second quarter, but it’s important that we not get ahead of ourselves. April was no ‘barn burner’ for job growth.”
Seasonally adjusted, 12 percent of small business owners surveyed added an average of 3.3 workers per firm over the past few months, and 14 percent reduced employment an average of 2.9 workers per firm, Dunkelberg said.
The remaining 74 percent of owners made no net change in employment.
“While firms have eased lay-offs, they haven’t resumed strong hiring,” Dunkelberg said. “Unemployment claims remain high and seasonal adjustments are off track as hiring, normally done in March and April, may have occurred earlier in the year.”

Leave a Reply

Your email address will not be published. Required fields are marked *