NFIB Economist Takes Aim at Washington

Washington, DC, Oct. 8, 2010--Willliam Dunkelberg, chief economist for the National Federal of Independent Business, issued a written statement on September's job numbers based on the NFIB's monthly survey to be released next week.

"Although the economy has been growing for over a year now, most firms have not increased employment and many have eliminated jobs. In September, 13% of small employers (up two points from August) increased average employment by 2.6 employees, but 16% (up three points) reduced their workforces by an average of 3.6 workers. Job creation has still not crossed the 0 line in the small business sector, as the average change in employment per firm was negative 0.26 workers.

"The percent of owners with unfilled hard to fill openings remained at 11% of all firms, historically a weak showing. Over the next three months, 16% plan to reduce employment (up three points), and 8% plan to create new jobs (unchanged), yielding a seasonally adjusted net-negative 3% of owners planning to create new jobs, four points worse than August.

"The push to create new jobs (based on economic factors) is clearly missing in the current economy and expectations for future business conditions are not supportive of job creation.

"Overall, the job creation picture is still bleak. Weak sales and uncertainty about the future continue to hold back any commitments to growth, hiring or capital spending. Economic policies enacted or proposed continue to fail to address the most important players in the economy--the consumers.

"The president keeps promising to push his agenda for higher energy costs, few believe the healthcare bill will actually help them, and there is huge uncertainty about the fate of the 2001 and 2003 tax rates. Deficits are at trauma level, incomprehensible to the average citizen. There is just no relief from Washington, only promises that the consumer sector will be asked to pay more of their income to support government spending. This has left consumer and business owner sentiment in the dumpster, unwilling to spend or hire."