NFIB small-business optimism index advances to pandemic-era high in April
By Iain Gilbert
Date: Tuesday 11 May 2021
(Sharecast News) - Both small and large US businesses moved to increase wages and benefits as part of an effort to attract workers amid rising demand for their goods and services, according to the National Federation of Independent Business' small-business optimism index advancing 1.6 points in April to a pandemic-era high of 99.8.
The reading was one point shy of the 100.8 print expected by the Street.
The report also showed a significant increase in the share of firms that raised prices to 36.0, up from 26.0 to its highest since the 1980s, while, planned price increases also jumped to their highest level since 2008, yet another sign that inflation was picking up.
"Small-business owners are seeing a growth in sales but are stunted by not having enough workers," said NFIB chief economist Bill Dunkelberg. "Finding qualified employees remains the biggest challenge for small businesses and is slowing economic growth."
More US small businesses said they were unable to fill open jobs in April than ever, as roughly 44% of job openings went unfilled last month, something that will undoubtedly add fuel to the fire of what was already a hot debate as to whether or not more generous jobless benefits had discouraged Americans from returning to work, with the Chamber of Commerce and the NFIB both insisting the increased benefits had indeed dissuaded people from accepting jobs.
On the other hand, Democrats in both the White House and Congress stated there was little evidence that people were refusing to take jobs as a result of new benefit structuring, stating school closures had forced parents to stay home and care kids and that many Americans remained fearful of returning to work as a result of the still ongoing Covid-19 pandemic.
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