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The nation’s small businesses are generally optimistic about the direction of the economy, a new report shows, but the majority report continued difficulty in filling jobs that allow them to take advantage of growth opportunities.
The recently released fourth-quarter MetLife and U.S. Chamber of Commerce Small Business Index recorded an overall score of 69.3, indicating a pause in the upward trend of the Index. The fourth quarter score is down less than one-half point from the third quarter’s record high of 69.7, still reflecting general optimism from the small business community.
Optimism on the health of the national economy has continuously increased since second quarter 2018 and is at a new high with 58% of small business owners believing the U.S. economy is in good health. Assessments of their local economies also improved this quarter, with 56% of small business owners noting their local economy as good, up six points from third quarter 2018, the report found.
“Small businesses are the growth engine of the American economy, employing half of the nation's private sector workforce,” Jessica Moser, senior vice president, Small Business Solutions in MetLife’s Group Benefits business says in a statement. “The owners of those businesses make crucial decisions about expansion and hiring every day, so their level of optimism is a good indicator of future growth.”
Approximately 40% of small business owners, though, say they have been actively searching for new hires in 2018, but 67% are having difficulty finding qualified candidates. Additionally, a mere 9% of small business owners say the talent pool for potential recruits is “very good” with 55% rating it “fair” or “poor,” the report found.
“There are too many people that lack the skills or credentials they need to compete for 21st century jobs and too many businesses that can’t find the workers they need, when and where they need them,” says Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, in the report. “A lack of skilled workers is going to hold back economic growth for the entire country.”
Despite these challenges, two out of three small businesses that searched for talent in 2018 say they do not plan to use a different recruiting strategy in 2019.
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