Report: Business optimism falls; uncertainty grows

Audio By Carbonatix

(The Center Square) – Business optimism took another hit in January, and uncertainty for business owners increased again.

The National Federation of Independent Business’ Small Business Optimism Index dropped 0.2 points in January to 99.3, but it continued to stay above its 52-year average of 98.

Also, the group’s Uncertainty Index jumped 7 points from December to January, climbing to 91.

Without state-specific data, NFIB Ohio State Director Jared Weiser is looking to state lawmakers to ease business concerns.

“Optimism among Ohio’s small business community is steady, but owners are expressing concerns with rising costs and business expenditures,” Weiser said in a statement. “As the Ohio General Assembly considers legislation this session, it's important lawmakers continue to prioritize policies that will grow and strengthen Ohio’s small business workforce and economy.”

For the third straight month, business owners listed labor quality as their top concern.

That comes on the heels of Ohio’s December unemployment report, which showed both the jobless rate and the labor participation rate as flat.

The state’s unemployment rate stayed at 4.5%, while the labor participation rate held at 62.3%, both worse than the national average.

“That said, private-sector employment was nearly flat in December, adding only 2,900 new jobs. With national job gains slowing, Ohio’s sluggish private-sector job growth is not surprising," said Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute. "And while the unemployment rate is strong by historical measures, more Ohioans need to be in the job market, and more jobs need to be created if Ohio, its communities, and its workers are going to thrive.”