According to the National Federation of Independent Business (NFIB), last month, small business saw a very slight growth in the number of jobs. Experts feel the holiday season and the looming fiscal cliff issue was to blame.
According to William C. Dunkelberg, chief economist for the NFIB, “Job creation in December was essentially zero, although it improved infinitesimally from the November report — but it’s nothing to write home about and certainly not a sign that robust growth is on the horizon.”
The NFIB’s monthly economic survey will be released on Tuesday January 8th and was conducted in December. It reflects the responses of 648 sampled organization members.
The report shows the number by which jobs grew is very small. The average change in employment increase to 0.03, up from -0.04. 76 percent of owners made no change in employment. 41 percent of the owners hired or tried to hire in the last three months and 33 percent (80 percent of those attempting to hire) reported few or no qualified applicants for open positions.
“The plunge in job creation plans and the decline in job openings likely reflect the pervasive frustration with Washington policy and the resulting economic uncertainty that peaked in December as Congress took us right to the edge of ‘the cliff,'” Dunkelberg adds. “The cliff deal did bring some certainty about tax rates and extenders for another year, but the health care act and EPA regulations are now pouring out, providing little comfort about the course of future costs.”
“If the unemployment rate falls, it is likely to be due more to demographics than new job creation which will not be strong, since holiday consumer spending failed to deliver the surge many had hoped for. We may have some certainty, but there is little reason to be hopeful.”