It is getting to be a broken record — we need small businesses to lead us into a real recovery that is based on job growth, but small businesses are just not ready to increase their workforces.
Two job indexes released this week show mixed results.
SurePayroll Scorecard data shows that month-over-month, hiring is down -0.1% and average paychecks are down 0.3%. Looking at this year compared to 2011 at the same time, hiring is down 1.3% and paychecks are down 1.3%.
The same survey showed a drop in optimism among small business owners to 65%, down from last month’s 70% finding.
Like the recent NFIB surveys, those small businesses looking to hire are finding it a challenge, particularly when it comes to finding qualified technology, sales/marketing, customer service, administrative workers.
The Intuit Small Business Employment Index shows that small business employment increased slightly — 0.2 in April.
Taken together it paints a familiar picture — no recovery led by small businesses is visible at this time.
RT @KimAuclair: Small Businesses Still not Hiring http://t.co/p6AylU5k via @cornwallj
So if small businesses aren’t leading the recovery, where is the recovery coming from? Today the dow is at 13,330 – which is up some 65% from its November, 21 2008 close of 8046. So for all practical purposes the markets are now starting to trade at their pre-recession highs of 2008.
But the umemployment rate has not retreated to where it was (about 6%) during the same time frame.
Could it be that all businesses (small & big) have found ways to do more with less? (i.e. they have found ways to be more productive without hiring as much people?)
small businesses not hiring since they can’t get loans http://t.co/DfvsvqrW
Obioma,
The Dow Jones Average has very little to do with the recovery. It is speculation about the short-term future, not an indication of current economic health or long-term prospects. Used to be these things, but no longer is. If productivity is improving it will eventually lead to expansion at some level. I hope and pray that you are right, but fear that you are not.