Despite some marginal improvements, American small businesses continue to face challenges, particularly in finding and retaining quality employees. This is according to the latest report from the National Federation of Independent Business (NFIB), released today.
Tray Abney, the Nevada State Director for NFIB, noted, “While it is good to see small business owners’ optimism inch higher, we know that they continue to struggle with finding and keeping quality employees.” Abney also highlighted the impact of recent wage increases, stating, “Due to a recent increase in the minimum wage and market necessity, our job-providers are paying their employees more. But that also adds to inflationary pressures and results in more costs to employers, their employees and their customers.” He anticipates hearing relief plans from upcoming candidates and public officials.
Economic concerns persist as NFIB Chief Economist Bill Dunkelberg commented, “Main Street remains pessimistic about the economy for the balance of the year. Increasing compensation costs have led to higher prices all around. Meanwhile, no relief from inflation is in sight for small business owners as they prepare for the uncertain months ahead.”
According to the report, inflation remains a significant issue, with 21% of business owners identifying it as their primary challenge, a slight decrease from May. The NFIB Small Business Optimism Index rose to 91.5 in June, a minor increase but still below the historical average for the 30th consecutive month. Additionally, 22% of small business owners plan to raise compensation in the next quarter, up four points from the previous month.
This monthly report, known as the Small Business Economic Trends (SBET) report, serves as a critical measure of the U.S. small business economy. It is widely utilized by the Federal Reserve and other economic policymakers to gauge the health of businesses that employ a significant portion of the American workforce. Insights into Nevada-specific small-business news can be accessed on the NFIB Nevada website and its social media platforms.
The NFIB, a nonprofit, nonpartisan organization, has advocated for small and independent business owners for over 80 years, maintaining a focus on issues affecting these enterprises across the nation.
