Press Releases

SMALL BUSINESS SNAPSHOT

December 2021

The Department of Labor reported that inflation skyrocketed to 6.8 percent in November compared to last year, the highest prices Americans have endured since 1982. It remains clear that higher prices are here to stay, and the Democrats are only exacerbating the problem with their reckless spending agenda. Make no mistake, the Biden administration’s failed economic policies are forcing Main Street America to pay more for just about everything this holiday season.

The Democrats continue to spend at the expense of the American taxpayer. We must uplift small businesses across the country with pro-growth, deregulatory policies, not hinder them with the burden of trillions of dollars in federal government spending.

In addition to soaring inflation numbers, in November, President Biden had the worst jobs report of his presidency, with the U.S. economy adding just 210,000 jobs, falling well short of the 573,000 new jobs economists expected. For months, Main Street U.S.A. has also been facing a labor shortage crisis with businesses unable to fill a near-record 11 million jobs in November.

The below Small Business Snapshot features numbers and news updates to provide more insight into the current small business economy.

MAIN STREET MEASUREMENTS:

  • CONSUMER PRICE INDEX (INFLATION)
    • The prices consumers paid for goods and services increased by .8 percent in November as compared to October.
    • This totals a 39-year high increase of 6.8 percent when measured over the last 12 months.
       
  • JOB OPENINGS
    • At the end of October, businesses were unable to fill a near-record 11 million jobs.
       
  • UNEMPLOYMENT RATE
    • Only 210,000 jobs were created in November.
    • 6.9 million Americans are unemployed and potentially able to work.
    • The unemployment rate decreased to 4.2 percent.
       
  • LABOR FORCE PARTICIPATION RATE
    • The labor force participation rate, the percentage of individuals in the workforce or searching for work, increased slightly to 61.8 percent in November.
       
  • UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
    • For the week ending December 4, 2021, the Department of Labor reported that initial unemployment claims totaled 184,000.
  • PERSONAL CONSUMPTION EXPENDITURES (CONSUMER SPENDING)
    • Consumer spending increased 1.3 percent in October.
       
  • CONSUMER SENTIMENT
    • Consumer sentiment, the measurement of the overall health of the economy as determined by consumer opinion, decreased to 71.7 in October.
       
  • BUSINESS FORMATION STATISTICS
    • Business formation applications totaled 432,034 in November marking a decrease of .1 percent over last month. 
       
  • 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 144,369 in November.
    • This is an increase of .8 percent.
       
  • COMMERCIAL AND INDUSTRIAL LOAN DATA
    • Through December 3, 2021, commercial and industrial loans totaled $2.423 trillion.
       
  • SBA LENDING DATA
    • The SBA approved a total of $2.6 billion 7(a) Loans through December 3, 2021.  
       
  • PRODUCER PRICE INDEX
    • Producer price index increased .6 percent in October and 8.6 percent year over year.
    • NOTE: The Department of Labor will publish the PPI for November on December 14, 2021.

 

NEWS YOU CAN USE:

CNBC: Inflation surged 6.8% in November, even more than expected, to fastest rate since 1982 (HERE)

  • “The consumer price index, which measures the cost of a wide-ranging basket of goods and services, rose 0.8% for the month, good for a 6.8% pace on a year over year basis and the fastest rate since June 1982.
  • "Energy prices have risen 33.3% since November 2020, including a 3.5% surge in November. Gasoline alone is up 58.1%.
  • "Food prices have jumped 6.1% over the year, while used car and truck prices, a major contributor to the inflation burst, are up 31.4%, following a 2.5% increase last month.
  • "The Labor Department said the increases for the food and energy components were the fastest 12-month gains in at least 13 years.
  • “With unemployment claims running at their lowest pace since 1969 and gross domestic product expected to show strong gains to end 2021 after a lackluster third quarter, inflation remains the biggest problem for recovery.”
     

Fox Business: US hiring stumbles in November as economy adds just 210,000 news jobs (HERE)

  • “U.S. job growth significantly undershot expectations in November, suggesting that difficulty in attracting new workers is weighing on the labor market’s recovery from the pandemic, even as COVID-19 cases dissipated nationwide.
  • “The Labor Department said in its monthly payroll report released Friday that payrolls in November rose by just 210,000, well below the 550,000 jobs forecast by Refinitiv economists. It marked the worst month for job creation so far this year.
  • “The labor market had been gaining momentum after a delta-induced slowdown over the summer, but the latest figure represents a significant drop from October’s upwardly revised number of 546,000 and September’s upwardly revised 379,000. There are still about 3.9 million fewer jobs than there were last February, before the crisis began.”


Job Creators Network: New Poll-Small Employers Enter Holiday Season Deeply Concerned (HERE)

  • “The survey reveals small businesses remain uneasy about Biden administration policies. Fifty-seven percent of respondents say proposed tax increases will hurt the small business community, while nearly half believe staff will quit if a vaccine mandate is implemented.
  • “While some small businesses are enjoying a holiday high, the smallest employers remain uneasy about current and future economic conditions. For example, only 32 percent of businesses with between two and nine employees would rate the current economy as good or excellent, compared to 45 percent of those with 20 or more workers. And only 24 percent of smaller employers are looking to bring on more staff over the next three months, compared to 72 percent of small businesses with more than 20 workers.
  • “In November, the top five concerns facing small businesses were:

1.) High Prices/Inflation

2.) Consumer Spending

3.) General Operating Costs

4.) Supply Chain Disruptions

5.) Taxes”

 

CNBC: The latest sign of President Biden’s inflation politics problem comes from Main Street (HERE)

  • "Concerns about the labor shortage remain high, but even more small business owners are seeing higher prices and supply chain disruptions, according to the survey: 75% of small business owners say they are experiencing higher supply costs, up from 70% in the third quarter; 58% are experiencing supply chain disruptions, up from 55%.
  • "Inflation tops the list of concerns, with 34% of small business owners citing it as the biggest risk to their business, followed by supply chain disruptions (23%) and Covid (17%).
  • "But just 22% of small business owners say the Biden Administration has been good for small businesses, while 62% say it has been bad for small businesses."

 

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