Small Business Owners Have No Plans To Hire In Coming Months

NEW YORK, June 2, 2014 /PRNewswire/ — Newtek Business Services, Inc. (NASDAQ: NEWT), The Small Business Authority^®, with a portfolio of over 100,000 business accounts, announced today the findings of its SB Authority Market Sentiment Survey, a monthly window into the concerns of independent business owners.

Based on a poll of over 1,500 respondents, the key finding from the May survey is that only 30% of business owners plan on hiring in the next 3 to 6 months. Additionally, 51% of business owners say their company hires employees who have just graduated from college.

The full May 2014 results showed the following:

Barry Sloane, Chairman, President and CEO of The Small Business Authority^® commented, “According to the Small Business Administration, about 70% of new job growth in the United States comes from small businesses. 

Our May survey depicts a lack of intention in our small business clientele to hire over the next two quarters and that the trend of a jobless economic recovery may continue.

Although we have seen the United States unemployment rate fall from about 10% to 6.3%, the historic measurement of employment trends in the U.S. has proven to be misleading. The labor department’s U-6 measure, currently at 12.3%, which essentially identifies the amount of workers that are eligible to work but are not working, including people who have left the labor force, is a more useful measure.

In order for the economy to recover there need to be more workers in the total population that are earning a wage and who can be clients of small businesses. Once this begins, we anticipate the small business economy picking up.”

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Photo by danielmoyle

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