Snapshots

SMALL BUSINESS SNAPSHOT

July 2021

The Biden administration is fueling inflation with an outrageous tax-and-spend agenda, all while leaving Main Street America with the bill. This morning, the Department of Labor reported that inflation increased 5.4 percent from a year ago, the fastest pace in nearly 13 years. In addition, a total of 48 percent of small businesses were forced to raise their prices in the month of May, which is the largest percentage reported in 40 years. 

Small businesses across the country are working tirelessly to recover from the pandemic, and they cannot afford the inflation tax that comes with the Democrats' failed economic policies. The below Small Business Snapshot features numbers and news updates to provide insight into the current small business economy.

MAINSTREET MEASURMENTS:

  • CONSUMER PRICE INDEX (INFLATION)
    The prices consumers paid for goods and services increased by .9 percent in June as compared to May, totaling an increase of 5.4 percent when measured over the last 12 months.
  • PRODUCER PRICE INDEX
    The price producers paid for goods and services increased .08 percent in May.
  • JOB OPENINGS
    In May, businesses were unable to fill 9,209,000 job openings up from a revised 9.1 million job openings in April. 
    Job openings across the country remain historically high.

  • UNEMPLOYMENT RATE
    In June, the U.S. unemployment rate increased to 5.9 percent with 9.5 million Americans who are unemployed and potentially able to work.

  • LABOR FORCE PARTICIPATION RATE
    The labor force participation rate remained stagnant at 61.6 percent in June.
  • HIGH PROPENSITY BUSINESS FORMATION STATISTICS
    New businesses categorized as having an increased likelihood of having employees and a payroll, otherwise known as High Propensity Businesses, totaled 167,706 (an increase of 0.6 percent) in May.


NEWS YOU CAN USE:

CNBC: Inflation climbs higher than expected in June as price index rises 5.4 (HERE)

  • "The consumer price index increased 5.4% from a year earlier, the largest jump since August 2008, just before the worst of the financial crisis.
  • "The core CPI rose 4.5%, the sharpest move for that measure since September 1991 and well above the estimate of 3.8%.
  • "That was the case again last month, as used car and truck prices leaped 10.5%, accounting for more than one-third of all the price index’s gains.
  • "Food and energy prices also were up substantially, 0.8% and 1.5% respectively. The gasoline index rose 2.5% in June and is up 45.1% over the past 12 months. Food has increased 2.4% in the past year.
  • "Consumers see prices overall up 4.8% in the next 12 months, according to a New York Fed survey released Monday."

 

NFIB COVID-19 Survey: Staffing Shortage Causing Loss of Sales for Some Small Businesses (HERE)

  • "Thirty-two percent of owners reported supply chain disruptions are having a significant impact on their business.
  • "Twenty-two percent of small employers are currently experiencing a significant staffing shortage and another 18% are currently experiencing a moderate staffing shortage.
  • "About half (48%) of small employers are receiving fewer job applications now for their open positions than they did a month ago and 39% are receiving about the same.
  • "When asked what adjustments have been made in business operations to compensate for the staffing shortage, 41% reported offering more hours to part-time employees.
  • "About three-quarters (77%) of respondents reported that they received a PPP loan in 2020 and 86% of owners have submitted a PPP loan forgiveness application for their 2020 loan."


NFIB: Small Businesses Continue to Struggle Finding Workers (HERE)

  • "According to NFIB’s monthly jobs report, 46% of small business owners reported job openings they could not fill in the current period, down two points from May but still above the 48-year historical average of 22%.
  • "Finding qualified workers remains a problem for small businesses as 89% of those hiring or trying to hire reported few or no “qualified” applicants for their open positions in June.
  • "Unchanged from last month, 26% of owners said that labor quality was their top business problem, remaining as the top overall concern. Eight percent cited labor costs as their top business problem."


Job Creators Network: New Job Creators Network Foundation Small Business Poll: Small Business Optimism Ticks Up, But Entrepreneurs Are Concerned About Inflation and Taxes (HERE)

  • "According to the latest data, small businesses are optimistic about the future, but only 8 percent say they’ve recovered from the pandemic completely. Many are still recovering from the economic problems of the last year.
  • "Small business owners are concerned about inflation. More than 32 percent of small businesses named inflation as their biggest or second-biggest concern right now.
  • "A related issue—operating costs—was named by 24 percent as their biggest or second-biggest concern right now."


The Alignable: 67% Of Small Business Owners Fear Inflation Will Hurt Their Business Recovery (HERE)

  • "More than two out of three small business owners (67%) are concerned that inflation will hurt their ability to recover
  • "59% say they’re having difficulty acquiring inventory/supplies.
  • “The No. 1 concern listed among small business owners is the rising cost of supplies.
  • "54% of those SMBs say government handouts are keeping potential employees at home. 
  • "58% of all small businesses that have had a difficult time reaching even half of their pre-COVID revenue levels."


Americans for Tax Reform: Family Owned Businesses Will be Hit Hard By Biden’s Second Death Tax (HERE)

  • “Repealing step-up in basis will impose capital gains taxes on the unrealized gains of every asset owned by a taxpayer once they die. This tax would be separate from, and in addition to, the 40 percent Death tax. This tax increase will eliminate 80,000 to 100,000 jobs each year for the first ten years and reduce the GDP by one hundred billion dollars over the next ten years.
  • "This tax increase would create significant new complexity for family owned businesses. This proposal would force taxpayers to determine the cost basis of all assets owned, many of which may have been owned for decades."

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