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Labor quality concerns have decreased, with only 16 per cent of owners citing it as their primary problem, the lowest since April 2020. Conversely, expectations for real sales saw a slight improvement despite remaining in negative territory. Hiring plans have slowed, with a record low since May 2020 of owners planning to create new jobs.
Job openings remain hard to fill, though the percentage of owners reporting unfilled positions has dropped to its lowest since January 2021. Similarly, the trend of raising selling prices has softened, indicating a potential easing in inflationary pressures.
A majority of owners have engaged in hiring or attempted to hire, but many struggle to find qualified applicants. Capital expenditures and inventory investments have declined, signalling caution among business owners, as per NFIB’s monthly jobs report.
Inflation concerns have shifted priorities, with a net 35 per cent of owners reporting increased compensation to attract labour, though this is on a decline. Profitability continues to be a concern, impacted by a mix of weaker sales, rising material costs, and seasonal changes.
Access to credit appears stable, with a small fraction of owners expressing difficulties in obtaining loans. This comprehensive overview suggests small businesses are navigating a complex landscape of inflation, labour market challenges, and cautious investment strategies.
Fibre2Fashion News Desk (DP)