Fewer small businesses tried to hire in June while more reduced employment, according to the monthly National Federation of Independent Business (NFIB) Jobs Report released last week.
The percentage of owners who said they hired or tried to hire last month dropped five points to 44 percent. Roughly 85 percent of them reported few or no qualified workers, while 15 percent of owners identified the qualified worker shortage as their number one problem.
The dip in June could signal growing uncertainty among small business owners about the direction of federal policy, NFIB President and CEO Juanita Duggan said.
“Small business optimism has been flying high for months based on the expectation that Congress will cut taxes and reform healthcare,” Duggan said. “Washington has not delivered on the small business agenda yet, and small business owners are paying attention.”
Further, 10 percent of owners reported increasing employment, which is down five points from the previous month. Meanwhile, the number of firms reducing employment edged up 2 points to 11 percent.
“Hiring activity remains strong by historical standards, but the drop in June was unmistakable,” NFIB Chief Economist Bill Dunkelberg said. “Whether this is the start of a negative trend or a one-month blip is something we’ll have to keep an eye on.”