As per the National Federation of Independent Business’s monthly employment poll, about 10 percent of jobs were added by small businesses last month, which has increased from 5 percent. As per the July report, there was a loss of 0.15 workers per firm for the past 3 months which is down from June’s loss of 0.28. This implies that the private sector employment rate is improving. But, still there is a need for the new jobs to be created.
As per a poll by Reuters who polled economists reported that there was a slight increase in unemployment rate from 9.5 previous month to 9.6 in July. There is an expectation that the private employers would add 90,000 positions. There is a overall payroll decline of 65,000.
About 10 percent of the small businesses firms are planning to decrease employment which has increased by 2 percent from the previous month. Only 9 percent of the small business firms were planning to create new posts which has decreased by 1 point.
As per the poll on NFIB member firms, small businesses are the main source of increase in employment. But, these firms are reluctant to hire because of the uncertainty of pace of recovery and weak sales.