Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for August 10:
- President Trump signs executive orders over the weekend
- Slight bump to small business optimism in Q3
- The shape of the jobs rebound: part-time work, lower pay
Trumps signs 4 executive orders over the weekend
“If the Democrats want to challenge us in court and hold up unemployment benefits to those hardworking Americans that are out of a job because of COVID, they’re going to have a lot of explaining to do.”
Over the weekend, President Trump signed a series of executive orders with the intention of extending unemployment benefits, suspending employer payroll taxes, deferring student loan payments, and protecting against evictions.
His actions came as talks between Republicans and Democrats stalled and millions of Americans found themselves abruptly cut off from any source of income. Analysts have warned, however, that unemployment benefits might not resume as quickly or as smoothly as advertised by the President, however. Likewise, the order covering the evictions does not actually order a moratorium on evictions.
The $400 per week unemployment benefit requires partial funding from states at a time when many states are facing huge budget shortfalls and decreased revenue.
Small business optimism sees a slight bump
“These business owners have learned to do more with less. And do more with technology, which has allowed many of them to operate more efficiently to innovate more and think of new ways to serve customers, while also cutting costs.”
A new survey indicates that small business owners believe that they’re seeing a glimmer of light at the end of the tunnel. Small Business Confidence rose slightly to 53, up from the record-breaking low of 49 earlier year. The current rating is still 9 points below where it was in January of 2020.
While only 36% of small business owners say that operating conditions are currently good, this is double the number for Q2. Even so, a full quarter of small business owners say that conditions are still downright bad.
The shape of the jobs rebound: part-time work, lower pay
“We added more jobs than most people expected, but the gains really were disproportionately part-time workers. To me, that means even if workers are coming back, it’s to jobs that pay less, and families will be worse off.”
A troubling trend in the recent new job creation has emerged: many of the jobs offer fewer hours for less pay. In fact, after 1.8 million new jobs were added to the economy in July, the number of people in the country working part-time rose by 800,000, indicating that gains were disproportionately for part-time workers. Furthermore, many people report that employers are offering less pay for the same positions, causing many American workers to fall further behind.