Small business hiring stalls in May: NFIB

WASHINGTON Thu Jun 2, 2011 3:28pm EDT

A sign in the window of a restaurant that is hiring is seen in San Francisco, California June 3, 2010. REUTERS/Robert Galbraith

A sign in the window of a restaurant that is hiring is seen in San Francisco, California June 3, 2010.

Credit: Reuters/Robert Galbraith

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WASHINGTON (Reuters) - Hiring by small businesses stalled in May and there was a small increase in the number of employers planning to cut their workforces, a survey showed in Thursday, another signal the labor market has lost steam.

The National Federation of Independent Business said its survey of 733 small businesses found that the average number of net new jobs slipped to 0.01 per firm from 0.04 in April.

The survey was published ahead of the release of the government's more comprehensive payroll count on Friday. Nonfarm payrolls likely increased 150,000 in May, according to a Reuters poll, after rising 244,000 in April.

"There were fewer increases and more reports of shrinkage in workforces, with 10 percent increasing employment an average of 3.2 employees per firm and 13 percent reducing employment an average of 3.1 employees, seasonally adjusted," the NFIB said.

It said its two gauges of the unemployment rate both fell last month, indicating the jobless rate probably rose from 9.0 percent in April.

Twelve percent of respondents reported unfilled job openings last month, down 2 points, the NFIB said. Over the next three months, 13 percent plan to increase employment, down 3 points from April.

About 8 percent of respondents planned to reduce their workforce, up 2 points from April.

(Reporting by Lucia Mutikani, Editing by Chizu Nomiyama)

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Comments (1)
VitoRJ wrote:
This is no surprise. There is absolutely no incentive to hire new employees. The Obama Administration has failed miserably to spur economic growth of any kind. Couple that with the Obama/Pelosi/Reid healthcare plan that passed which actually caused health insurance premiums to increase (due to their genius mandates), Unemployment Compensation taxes up over 1,000% for my company and skyrocketing fuel costs, why would I want to hire new employees? My UCT liability last year for the first quarter was $74, 2011 first quarter liability $946. Ouch! That really hurt. I just simply cannot afford to risk additional capital nor take on any debt in hopes of increasing business. Obama’s failed economic policies gives no optimism to growing our businesses nor taking the risk to grow our business by hiring additional employees!

Jun 03, 2011 3:03pm EDT  --  Report as abuse
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