2016 has not been kind to the stock market. The quarter of a percent increase to the interest rate last year scared many people, even though analysts predicted the change would not be felt too much. Globally, the markets are not doing any better than the US market, and commerce has slow down across the country and industries. But despite all these issues, and despite the fact the small business confidence it at its lowest since 2014, the small business community feel confident about the labor market in this country.
For more about this follow the links below.
US small business confidence at two-year low
U.S. small business confidence fell in January to its lowest level in nearly two years amid worries about the near-term outlook for business conditions and sales growth, consistent with a recent slowdown in economic growth.
The National Federation of Independent Business said on Tuesday its Small Business Optimism Index fell 1.3 points to 93.9 last month, the weakest reading since February 2014. Still, small businesses remained fairly upbeat about the labor market.
The NFIB said there was little sign that a stock market selloff and December’s interest rate hike by the Federal Reserve, the first in nearly a decade, had impacted confidence. Owners’ perceptions of business conditions in six months weakened sharply as did their views of expected sales.
Workers Are Ready To Quit; Small Business Pay Hikes Hit 8-Year High
Americans are ready to quit, while small firms are hiking pay rapidly despite weak sales and gloomy forecasts. Business continue to trim inventories too.
Job Openings Jump; More Workers Quit
Job openings rose to 5.61 million in December from 5.35 million in November, the Labor Department said in its JOLTS survey. The number of hires climbed to 5.36 million from November’s 5.26 million. That’s the highest since September 2004.
Total separations climbed to 5.1 million. Quits hit a 10-year high of 3.06 million, up sharply from November’s 2.86 million. That suggests workers are growing more confident about finding other, better employment.
Wholesale Destockpiling Continues
December wholesales inventories fell 0.3% vs. the 0.2% drop expected. November stockpiles were revised from -0.3% to -0.4%. Meanwhile, wholesale sales fell 0.3% after tumbling 1.3% in November. The data suggest inventories were a slightly larger drag on Q4 GDP than first thought. Q4 GDP growth was initially estimated at a 0.7% annual rate, with other data also signaling downward revisions.
Rural businesses are struggling to recruit young people
Poor public transport, sluggish broadband and a talent drain to big cities is making it hard for countryside enterprises to survive
face a number of challenges with running my rural Indian cookery school in Somerset. So when I had a chance to question George Osborne at the recent Federation of Small Businesses policy conference in London, I asked: “What assistance will there be to attract skilled young people to settle and take jobs in rural areas?”
Osborne suggested broadband was the answer, much to our amusement. His response missed the point: we do need better broadband, poor internet speeds are an ongoing problem in rural areas, but it isn’t the solution to attracting young talent.
To recruit young people I’m competing with a talent drain into the cities. Many young people who grow up in rural Somerset leave for university in Bristol, Bath and Cardiff and never return. Poor public transport links and living costs put them off. The majority of new people moving to my village are retirees.
