Idaho Examiner: NFIB ECONOMIC REPORT "My Idaho...My Planet Rocks!"

Washington, D.C. July 3, 2008 – Statement from William C. Dunkelberg, chief economist for the National Federation of Independent Business, the nation’s leading small business organization, on June job numbers based on NFIB’s monthly economic survey that will be released on Tuesday, July 8. The survey was conducted through June 30, 2008 and reflects 703 small business owner respondents:

“Seasonally adjusted, there was a decline in employment reported by small business owners in June (a decline of 0.5 workers per firm). Six percent of the owners increased employment by an average of 4.3 workers per firm, and eighteen percent reduced employment at average of 4.6 workers per firm, substantially worse than April and May.

“Forty-seven percent of the owners hired or tried to hire in June (up 4 points from May), and 83 percent of those trying to hire reported few or no qualified applicants for the job openings they were trying to fill. Twenty-one percent (seasonally adjusted) reported unfilled job openings, up 6 points from May (the thirty-four year average is twenty-two). Ten percent of the owners reported that the availability of qualified labor was their top business problem, much lower than last September (the Fed’s first economic warning and rate cut) when openings stood at twenty-five percent of all firms and seventeen percent complained about the lack of qualified labor.

“Over the next three months, fourteen percent plan to create new jobs (down 2 points), and 8 percent plan workforce reductions (unchanged), yielding a seasonally adjusted net 5 percent of owners planning to create new jobs – up 3 points from May.

“Not seasonally adjusted, more owners plan to cut employment than planned to increase jobs in finance, insurance and real estate and in the wholesale trades. Job creation plans are most frequent in professional services, manufacturing and construction (seasonally strong now). Regionally, more firms plan cuts than increases in the south Atlantic states and the east North Central states (the “auto belt”). The mid-Atlantic states were weak as well. Plans are strongest among firms in the states west of the Mississippi.”

NFIB’s Small Business Economic Trends is a monthly survey of small business owners’ plans and opinions. Decision makers at the federal, state and local levels actively monitor these reports, ensuring that the voice of small business is heard. The NFIB Research Foundation conducts some of the most comprehensive research of small business issues in the nation. The National Federation of Independent Business (NFIB) is the nation’s leading small business advocacy group. A nonprofit, nonpartisan organization founded in 1943, NFIB represents the consensus views of its members in Washington and all 50 state capitals.