Small business optimism growing; labor still a concern

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(The Center Square) – Small businesses are becoming more optimistic and less uncertain about the future, according to new figures released by the National Federation of Independent Business.

The group’s monthly optimism index rose a half point in August to 100.8, almost 3 points higher than the 52-year average of 98. At the same time, the uncertainty index fell by 4 points but is still above its historical average.

Those numbers, according to NFIB Ohio State Director Jared Weiser, show recent tax decisions are faring well, but the labor market remains a concern.

"Although state-specific data is unavailable, small employers are feeling more optimistic following the federal Small Business Deduction tax win in addition to stronger sales expectations and improved earnings,” Weiser said. "The biggest concern for small business owners continues to be the labor market and finding qualified employees for their open positions."

The same report showed 68% of small businesses rated the health of their business as either excellent or good, while only 4% said it was poor.

Also, the net percentage of owners expecting higher real sales climbed 6% from July to August, and the net percentage of owners expecting to raise prices over the next three months stood at 26%, 2 points lower than in July.

Small business owners also reported labor quality as their single most important problem, with 21% ranking it at the time. And 32% said they have job openings they can’t fill.

The last time a smaller percentage of owners reported fewer job openings that could not be filled was in July 2020.