WASHINGTON (MNI) – The following is the text of the National
Federation for Independent Business summary of its May hiring survey
with 681 responses, published Friday:

“May was a stagnant month for employment in the small-business
sector, with the net change in employment per firm, seasonally adjusted
coming in at “0”, down 0.1 from April. Seasonally adjusted, 10 percent
(down 2 points) of the owners added an average of 2.6 workers per firm
over the past few months, and 15 percent (up 1 point) reduced employment
an average of 2.1 workers per firm. The remaining 75 percent of owners
made no net change in employment.

While the trend remained positive, May’s numbers were weaker than
April’s and do not breed confidence that strong economic growth is just
around the corner.

“To the surprise of many, the ability to find qualified applicants
for available jobs continues to plague the small-business community.
Fifty-one (51) percent of owners hired or tried to hire in the last
three months and 37 percent (73 percent of those trying to hire or
hiring) reported few or no qualified applicants for positions. Nineteen
percent have openings for skilled workers. Firms have eased layoffs, but
have not resumed strong hiring.

“The percent of owners reporting hard to fill job openings rose 3
points to 20 percent, the highest reading since June of 2008.
Hard-to-fill job openings are a strong predictor of the unemployment
rate so the gain in openings is a welcome development, although
considering this morning’s DOL numbers, it’s clear that the impact has
yet to materialize.

“The net percent planning to create new jobs rose 1 point to a net
six percent planning to create new jobs. Not seasonally adjusted, 17
percent of owners plan to increase employment at their firm, down 1
point, and five percent plan reductions. This is unchanged from April
suggesting that owners are still hesitant to expand.”

“The declines in construction employment seasonally adjusted seem
inconsistent with the steady improvement in housing starts. Looking
ahead, 21 percent plan to create new jobs, only four percent plan to
reduce employment in the NFIB May survey. In manufacturing, a major
contributor to what little job growth we experienced, NFIB members
reported a solid increase in employment per firm, with 23 percent
increasing employment by an average of three workers per firm and 13
percent reducing employment an average of 2.4 workers.

The overall gain of 0.3 workers per firm is a very strong number.
The wholesale trades remain “on fire,” with 10 percent of the NFIB firms
adding an average of 4.8 workers per firm. More firms (13 percent)
reported reductions in employment, but by an average of 2.2 workers,
producing a solid gain of 0.2 workers per firm overall.

“Small-business hiring in May continued the positive trend of the
past few months, but just barely.”

** MNI Washington Bureau: 202-371-2121 **

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