WASHINGTON (MNI) – The National Federation of Independent Business
Thursday issued the following statement from its Chief Economist
William Dunkelberg:

“The cold has set in, and it looks like it might be a long winter
for small-business owners. Still hunkering down, small-business owners
reported a small, but overall reduction in employment, posting an
average reduction of 0.1 employees per firm in October.

“While consumer spending posted a slight uptick, those gains did
not translate to improved small-business sentiment, and more
importantly, did not create jobs. Seasonally adjusted, 12 percent of the
owners added an average of 3.1 workers per firm over the past few
months, but 11 percent reduced employment an average of 3.9 workers per
firm. The good news is that October’s jobs numbers are better than
September’s (which showed a net decrease of 0.3 employees per firm), but
still not good enough to lower the unemployment rate. Some firms do have
job openings, but 31 percent of those who hired or tried to hire
reported few or no qualified applicants for the positions.

“Fourteen (14) percent of small employers (seasonally adjusted)
reported hard to fill job openings-the same as last month. Over the next
three months, nine percent plan to increase employment (down 2 points),
and 12 percent plan to reduce their workforce (unchanged), yielding a
seasonally adjusted net three percent of owners planning to create new
jobs. This is down 1 point from September and 2 points below August, the
month that has, thus far, posted the strongest reading for 2011. For
some context, in an expansion, this number should exhibit double digit
readings.

“A snapshot at regional numbers reveals that job creation plans
were quite negative among firms in all regions except the West Central
and Mountain states. Energy development is driving a lot of business
activity in these states.

“Overall, prospects for job creation remain bleak. I’ll say it
again — it could be a long winter.”

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: MAUDS$,M$U$$$]