Record Shares of U.S. Small Firms Report Hiring Plans, More Pay

(Bloomberg) -- Record shares of U.S. small-business owners reported increasing compensation and plans to add workers, according to the National Federation of Independent Business.

Some 28% of firms last month said the planned to hire in the next three months, while 39% of owners reported raising worker pay, the NFIB said Thursday. Those were the largest shares in monthly data back to 1986.

While the share of companies reporting job openings eased to 46% during the month, it was second only to the record 48% seen a month earlier. Compensation plans also climbed, just shy of the highest reading in the group's data.

“In the busy summer season, many firms haven't been able to hire enough workers to efficiently run their businesses, which has restricted sales and output,” Bill Dunkelberg, the NFIB's chief economist, said in a statement. “Owners are doing everything they can to get back to a full, productive staff.”

Finding qualified workers remains a challenge for small firms, with 89% of those hiring or looking to hire reporting few or no qualified applicants, the NFIB said.

The figures precede the Labor Department's jobs report out Friday. It's projected to show employers added 720,000 workers in June.

©2021 Bloomberg L.P.