In a survey of small businesses, it became evident that the industry is hiring new professionals. But the economists are still reluctant to accept a paradigm shift in the job market. National Federation of Independent Business (NFIB) said that in October the average employment change per company has remained zero. This meant that the small businesses are not deducting jobs. It is also true that since April 2007, the NFIB’s employment change has remained positive for only two quarters.
There is no doubt about the fact that the zero mark in itself is a milestone. Raymond Keating, chief economist of Small Business and Entrepreneurship Council (SBEC), says, “There’s small improvement going on, sure, but it’s nowhere near where we should be in an economic recovery.” SBEC and NFIB are advocacy group for small businesses.
The index of business owner optimism of NFIB rose 2.7 points to reach 91.7. The index still shows signs of recession. It is still hard time for small companies to raise good revenue. William Dunkelberg, NFIB’s chief economist, writes, “it does not appear that sales trends are supportive of a recovery in the small business sector just yet, but they were a bit stronger in October than September.”
Small businesses like the large companies are waiting for an increase in US customer spending. But this seems difficult seeing the 9.6 percent unemployment rate in view. Small companies initially did the hiring during recessions but are not willing to keep the trend up.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to