Snapshots

SMALL BUSINESS SNAPSHOT

August 2021

On Wednesday, the Department of Labor reported that inflation remains at a 13-year high. The July 2021 Consumer Price Index increased 0.5 percent, or 5.4 percent year-over-year.

In response to this report, Ranking Member Luetkemeyer released the following statement: "Today’s inflation report reaffirms what Republicans have been warning for months. Small businesses nationwide are being forced to bear the burden of the Democrats’ massive government spending agenda in all sectors. Make no mistake – inflation is taxation. With inflation at a 13-year high, this report is yet another indicator that Main Street U.S.A. simply 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.


MAIN STREET MEASURMENTS:

  • CONSUMER PRICE INDEX (INFLATION)
    • The prices consumers paid for goods and services increased by .5 percent in July as compared to June, totaling an increase of 5.4 percent when measured over the last 12 months.
  • LABOR FORCE PARTICIPATION RATE
    • The labor force participation rate remained relatively unchanged at 61.7 percent in July as small businesses continue to face a labor crisis on Main Street U.S.A.
       
  • PRODUCER PRICE INDEX
    • The price producers paid for goods and services increased 1.0 percent in June.
       
  • UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
    • For the week ending July 31, 2021, the Department of Labor reported that initial unemployment claims totaled 385,000.
  • JOB OPENINGS
    • At the end of June, businesses were unable to fill a record high 10.1 million job openings up from a previous record high of 9.4 million in May.  
       
  • UNEMPLOYMENT RATE
    • The unemployment rate decreased to 5.4 percent, but 8.7 million Americans remain unemployed and potentially able to work.
       
  • PERSONAL CONSUMPTION EXPENDITURES
    • Consumer spending increased 1.0 percent in June.


NEWS YOU CAN USE:

NFIB: Small Business Labor Shortage Hits New Record in July (HERE)

  • "Small business owners reported a record high reading of unfilled job openings with 49% of owners reporting job openings they could not fill in July.
  • "Unfilled job openings have remained far above the 48-year historical average of 22%.
  • "Overall, 61% of owners reported hiring or trying to hire in July, up two points from June.
  • "Ninety-three percent of those owners hiring or trying to hire reported few or no “qualified” applicants for the positions they were trying to fill in July."

Job Creators Network: New Poll - Small Business Optimism Rises, But Future Expectations Begin to Level Out (HERE)

  • "Assessments of “current conditions” rose by 4.8 points while “future expectations” experienced a marginal gain.
  • "Fifty-four percent of respondents believe that tax hikes proposed by the Biden administration will hurt small businesses.
  • "More than 36 percent of small businesses named inflation as their biggest or second biggest concern right now (a jump of 4-points).
  • "Only 10 percent of small businesses say they’ve already recovered from the economic effects of the pandemic—only a 1 percent increase from last month."

CNN: Workers' compensation is lower than is was in December 2019. Blame inflation (HERE)

  • "In fact, compensation is now lower than it was in December 2019, when adjusted for inflation.
  • "Job openings are at record-high levels, according to the Bureau of Labor Statistics."
  • "The consumer price index rose 0.9% in June and 5.4% over the past 12 months — the largest jumps for each since mid-2008, according to federal data.
  • "Americans are noticing, raising concerns about the higher prices for homes, cars and household goods, such as appliances."

Fox Business: Job openings hit record high in June (HERE)

  • "The number of U.S. job openings hit a record high in June as employers struggled to find workers amid an ongoing labor shortage. 
  • “The total number of job openings rose by 590,000 to 10.073 million, according to the Labor Department’s Job Opening and Labor Turnover Survey, or JOLTS.
    • "The number of job openings in May was revised higher by 274,000. 
  • "Within the separations category, 3.9 million workers quit their jobs, an increase of 239,000 from the prior month."

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