Small Business Optimism Remained High in May

Washington, DC, June 13, 2017-The Small Business Optimism Index for May matched its strong performance in April of 104.5, according to the latest National Federation of Independent Business (NFIB).

That means the Index has been at a historically high level for six straight months. Five of the Index components posted a gain, four declined, and one remained unchanged.

“The remarkable surge in optimism that began last year right after the election shows no signs of slowing down” said NFIB President and CEO Juanita Duggan. “Small business owners are highly encouraged by the President’s regulatory reform agenda, and they remain optimistic there will be tax reform and health-care reform. This is a policy-driven phenomenon.”

The average employment change per firm was 0.34, which puts hiring activity in May near the highest levels in the 43-year history of the Index. Fifteen percent of owners reported hiring three workers per firm, 9% reported cutting 2.3 workers per firm.

A strong majority of owners, 59%, reported hiring or trying to hire in May, although 51% said they found few or no qualified workers. Remarkably, that was a problem for 86% of owners who said they tried to hire. Nineteen percent of all owners in the survey said finding qualified workers was their top concern, making it the second-biggest problem for small business.