Welcome to the Small Business Weekly Rundown. Each week, we bring you stories and trends that impact small business owners and their workforce.
Small Business News Highlights:
- New jobs creation slows but still exceeds economists’ expectations
- Small business employment grew in June
- States without jobless benefits still struggle to fill vacancies
- Small businesses continue to lose in trade war with China
New jobs creation slows but still exceeds economists’ expectations
“The labor market recovery remains robust, with June closing out a strong second quarter of jobs growth.”
The United States economy added 692,000 new private sector jobs during the month of June, exceeding economists’ expectations while still representing slower growth than last month.
The hospitality sector continued to see the biggest gains, with over 300,000 new positions, while education, health, and business services also saw increases. IT was the only sector of the economy to lose jobs.
Despite 3 million new hires so far this year, the economy is still down by roughly 7 million jobs from pre-pandemic employment levels.
Small business employment grew in June
“Things are clearly opening up more, and people are going back to work.”
Speaking of jobs, new data shows that small business employment growth grew by 0.26% last month, with the majority of hiring taking place in the leisure and hospitality industries.
Despite the gains, economists note that the situation is complicated — as businesses have been forced to offer more money to attract workers in the competitive labor market.
States without jobless benefits still struggle to fill vacancies
“We were hoping we would see pre-pandemic levels.”
While the economy continues to replace jobs lost to the pandemic, many economists continue to speculate about the causes behind the persistently high unemployment rate. In states that did away with federally enhanced unemployment benefits, employers continue to struggle to fill open positions — suggesting that the issue may be more complex than it seems.
For starters, experts point to the fact that many open positions are low-level, low-paying jobs that don’t attract risk-averse workers who are concerned about the ongoing threat of coronavirus.
Small businesses continue to lose in trade war with China
“It seems that import tariffs are here to stay and that the trade war isn’t going to end anytime soon. Many small businesses could face higher input costs, compressed margins and lower demand for their products.”
The past 2 years have done little to ease trade tensions between the U.S. and China. And while large corporations may feel the sting of these tensions, small businesses will continue to be disproportionately impacted.
Faced with increased tariffs, small businesses can choose to cut costs, find new suppliers, or pass on the expense to consumers.
The Latest from Workest
New minimum wage requirements are going into effect on July 1, 2021. Take a look at this minimum wage overview from Andrea Curry to see how your business might be impacted.
Good leaders know how to inspire and equip workers. This week, Stacy Pollack explores how to Empower Employees to Become More Independent With Completing HR Tasks.
Finally, before we say goodbye for the week, here are 3 things you should know:
- First it was the pandemic, now it’s record-breaking heat. Businesses across the Pacific Northwest are closing since they can’t keep up with the heat.
- New York City landlords are getting creative in the hopes of hanging on to commercial tenants.
- Open human resources positions have spiked over 50% from pre-pandemic levels.