Small business optimism back on the upswing; labor, inflation concerns

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(The Center Square) – Optimism continued its roller coaster in November, but challenges in hiring remained a sticking point for small businesses around Ohio.

The National Federation of Small Business Optimism Index climbed 0.8% last month to 99%, above its 52-year average during a year of ups and downs.

At the same time, the Uncertainty Index also rose 0.3%, and business owners expecting business conditions to improve continues to plummet.

Filling open positions is also an ongoing struggle.

Although state-specific information is not available, NFIB Ohio State Director Jared Weiser said that creates issues during the holiday season.

“Ohio’s small business community is feeling more optimistic as owners expect higher sales to close out the year,” Weiser said. "While optimism is improving, the tight labor market remains a consistent challenge for those small businesses looking to hire and find qualified applicants."

The number of owners who expect more sales in November compared to October increased by 9 points, according to the index, but the percentage of owners expecting better business conditions fell 5 points from October.

Overall, expectations for better business conditions have fallen 32% since January.

The report also showed 34% of small business owners raised prices in November, up 13 points from October.

Also, 15% of small business owners said inflation was the top issue affecting their business, up 3 points from October and ranking it behind labor as the biggest concern.

The organization’s monthly job report also showed 33% of owners had job openings they couldn’t fill, up a point from October. Historically, the percentage of unfilled jobs averages 24%.