Snapshots

SMALL BUSINESS SNAPSHOT

January 2022

Throughout 2021, small businesses across the country were facing skyrocketing inflation, labor shortages, a supply chain crisis, and severe economic uncertainty. Unfortunately, it is clear that these issues are still prominent in 2022. President Biden and the Democrats' reckless spending agenda has surged inflation to new heights and forced Americans to pay more for just about everything, from goods and services to their own taxes. 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.

The below January 2022 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 again by .5 percent in December, after rising .8 in November, totaling 7 percent when measured over the last 12 months. This is the largest 12-month increase in 40 years.
  • PRODUCER PRICE INDEX
    • The producer price index increased .2 percent in December and 9.7 percent year over year, the largest calendar-year increase on record
  • JOB OPENINGS
    • At the end of November, businesses were unable to fill a near-record 10.6 million jobs and a record 4.5 million workers quit their jobs.
  • UNEMPLOYMENT RATE
    • 199,000 jobs were created in December, far short of economist predictions, and the unemployment rate declined to 3.9 percent. 6.3 million Americans are unemployed and potentially able to work.
  • LABOR FORCE PARTICIPATION RATE
    • The labor force participation rate remained stagnant at 61.9 percent in December.
  • UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
    • For the week ending January 8, 2022, the Department of Labor reported that initial unemployment claims totaled 230,000.
  • PERSONAL CONSUMPTION EXPENDITURES (CONSUMER SPENDING)
    • Consumer spending increased .6 percent in November.
  • CONSUMER SENTIMENT
    • Consumer sentiment decreased to 67.47 in November.
  • BUSINESS FORMATION STATISTICS
    • Business formation applications totaled 418,380 in December marking a decrease of 2.8 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 137,254, a 4.6 percent decrease in December.
  • COMMERCIAL AND INDUSTRIAL LOAN DATA
    • Through January 7, 2022, commercial and industrial loans totaled $2.441 trillion.
  • SBA LENDING DATA
    • The SBA approved a total of $4.8 billion 7(a) Loans through January 7, 2022.  

NEWS YOU CAN USE:

NFIB: Small Business Owners Reporting Inflation as Biggest Problem - Highest Since 1981 (HERE)

  • “The NFIB Small Business Optimism Index increased slightly in December to 98.9, up 0.5 points from November.”
  • “Twenty-two percent of small business owners reported that inflation was their single most important problem encountered in operating their business.”
  • “Forty-nine percent of owners reported job openings that could not be filled, an increase of one point from November.”

SBE Council: Relentless Inflation “Putting a Massive Burden” on Small Business (HERE)

  • At 7% in 2021the U.S. experienced its highest level of inflation since 1982. That’s deeply troubling. Inflation is undermining the economic recovery in a variety of ways. It is creating uncertainty for entrepreneurs, businesses and investors.”
  • It is raising costs for businesses, a burden small businesses cannot endure at this critical time. It diminishes the purchasing power of the dollar and raises taxes. For example, the real capital gains tax is higher than the stated nominal rate since gains are not indexed for inflation.”
  • “As for Congress and the administration, policies must reduce tax and regulatory burdens on entrepreneurship, investment, business and work are vital to boosting incentives for these vital undertakings that drive innovation, productivity, and economic growth. In other words, policy needs to be moving in the exact opposite direction of its current path.

Job Creators Network: December Monthly Monitor (HERE)

  • "Small businesses are still hurting from COVID. Among those who have suffered, 18 percent say they may never recover. This is even more pronounced among female and minority owned businesses where 33 percent and 38 percent say they may never recover, respectively."
  • "Inflation is still the biggest issue on the minds of small business owners with 37 percent saying it’s their biggest or second biggest concern. 70 percent of small businesses say the Biden administration isn’t doing enough to fight inflation and 64 percent of them think the Build Back Better plan would increase inflation."
  • "Forty-seven percent of small business owners think the US economy is going in a worse direction compared to only 32 percent who say it’s going in a better direction."

 

 

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