The National Federation of Independent Business (NFIB) on Tuesday announced that its Small Business Optimism Index rose to 99.8 in April, an increase of 1.6 points from March. While this index has now increased 4.8 points this year, a record 44% of employers reported job openings that could not be filled in the latest month’s survey.
Additionally, 8% cited labor costs as their top business problem and 24% said that labor quality was their top business problem, unchanged from March as the top overall concern.
A net 31% (seasonally adjusted) reported raising compensation in April, while a net 20% plan to raise compensation in the next three months. Increased compensation is being passed on to customers through higher prices, per NFIB.
This is backed up by the net percent of owners raising average selling prices increasing 10 points to a net 36% (seasonally adjusted), the highest reading since April 1981 when it was 43%. Price hikes were the most frequent in wholesale (62% higher, 3% lower) and retail (46% higher, 6% lower). Seasonally adjusted, a net 36% plan price hikes, the highest reading since July 2008.
“Small business owners are seeing a growth in sales but are stunted by not having enough workers,” stated NFIB chief economist Bill Dunkelberg. “Finding qualified employees remains the biggest challenge for small businesses and is slowing economic growth. Owners are raising compensation, offering bonuses and benefits to attract the right employees.”
Alabama currently has the lowest unemployment rate in the Southeast and one of the lowest in the nation.
State-specific data is unavailable, but NFIB state director for Alabama Rosemary Elebash said, “Today in Alabama, there are more job postings than there are job applicants, but hopefully Governor Ivey’s decision to end federal pandemic-related unemployment benefits will encourage people to return to the workforce.”
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Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn
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