NFIB Weekly News

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NFIB Weekly News Leading the News

Small Business Owners “Struggling At Record Levels” To Hire Workers (06/08/2021)

The Washington Post (6/4, A1) reported, “The U.S. economy added 559,000 jobs in May, staving off fears of a slowdown but falling short of the blockbuster recovery numbers that had once been expected to accompany growing vaccinations and an easing pandemic.” Business owners reportedly still have trouble filling open positions, and “nearly half — 48 percent — of all small businesses surveyed by the National Federation of Independent Business reported unfilled job openings, a record high for the business group and 26 points higher than the decades-long average of 22 percent.” NFIB Chief Economist Bill Dunkelberg was quoted saying, “Small business owners are struggling at record levels trying to get workers back in open positions. ... Owners are offering higher wages to try to remedy the labor shortage problem. Ultimately, higher labor costs are being passed on to customers in higher selling prices.”

Business Climate

ADP Reports May Having Massive Private Job Growth (06/08/2021)

CNBC (6/3, Cox) said that on Thursday ADP reported private job growth in May “accelerated at its fastest pace in nearly a year as companies hired 978,000 workers.” The article described sectors that experienced massive growth, including leisure, hospitality, education, health services, trade and transportation.

Small Business Marketing

Prime Day To Take Place June 21-22; Prime Members Encouraged To Support Small Businesses (06/08/2021)

USA Today (6/2, Tyko) reported Amazon confirmed Prime Day 2021 will take place June 21 and 22, the earliest ever Prime Day. The shopping event “last year was the latest ever amid the COVID-19 pandemic.”

CNN Business (6/2, Meyersohn) reported Amazon is “using Prime Day to highlight how the savings event benefits independent merchants that sell goods through its website.” Prime members will earn “a $10 credit on Prime Day if they spend $10 at select small businesses from June 7 through June 20, Amazon said.” The offer is “part of a new $100 million investment the company was making to boost small businesses.” Fast Company (6/2, Meyer) reported, “Amazon Prime Rewards Visa Card and Amazon Prime Store cardholders with eligible Prime memberships may earn 10% back in rewards on small-business purchases.” Forbes (6/2, Page) reported Amazon will “list ‘more than a million deals from small and medium-sized businesses,’ including local Black-owned, woman-owned, military family-owned companies.”

Wages and Benefits

Labor Department: Unemployment Rate Falls From 6.1% To 5.8% (06/08/2021)

The New York Times (6/4, A1, Cohen) reported the Labor Department on Friday announced that US employers “added hundreds of thousands of jobs last month as coronavirus infections ebbed, vaccinations spread and businesses reopened,” but “the labor market’s recovery from the pandemic is proving to be choppy.” The Times added the jobs report “highlighted the puzzling fact that millions remain on the jobless rolls even as many employers complain of worker shortages.”

The AP (6/4, Rugaber) reported US employers “added 559,000 jobs last month [in] an improvement from April’s sluggish increase,” while the unemployment rate fell from 6.1% to 5.8%. The Wall Street Journal (6/4, A1, Omeokwe, Subscription Publication) reported the leisure and hospitality sectors led the May job gains with the addition of 292,000 jobs, but Axios (6/4, Brown) reported the construction sector “shed 20,000 jobs in May,” due to “a steep decline of specialty trade contractors.”