Small Business Optimism Beats Forecast, Hiring Strongest Since 1999

The National Federation of Independent Business (NFIB) Small Business Optimism Index rose to 105.2, fueled by significant gains in hiring. The headline number beat the 103.2 consensus forecast.

A seasonally adjusted net 19% said they plan to create new jobs, a gain of 4 points to the highest level since December 1999. Among the 10 components making up the Small Business Optimism Index, 7 improved, 2 declined and 1 was unchanged.

The skills gap continues to pose a challenge to small businesses, as 60% reported hiring or trying to hire, a gain of 6 points. But 52%, which is 87% of those hiring or trying to hire, reported few or no qualified applicants for the positions they were trying to fill.

Nineteen percent (19%) cited the difficulty of finding qualified workers as their Single Most Important Business Problem, up 4 points and second only to taxes. The NFIB said this is more severe for construction (28%) and manufacturing (21%) businesses, where labor shortages are the top problem, even more so than taxes and regulatory costs.

Thirty-five percent (35%) of all small business owners said job openings could not be filled in the current period, up 5%, the highest reading since November 2001.