Small US businesses less optimistic on hiring

WASHINGTON, June 3 (BestGrowthStock) – Weak sales will keep hiring
by small U.S. businesses subdued for a while even as their
larger counterparts increase payrolls, according to a survey on
Thursday.

The National Federation of Independent Business (NFIB) said
its measure of average employment per firm recorded a
seasonally adjusted loss of 0.5 workers in May. The measure has
been negative every month since January 2008.

It also noted that most of the 823 businesses in the
survey, conducted through May, reported they did not change
employment, while 8 percent increased average employment by 2.5
workers.

However, about 20 percent reduced their workforces by an
average of 4.0 employees.

The survey was published ahead of the release on Friday of
the government’s closely monitored employment report for May,
which is expected to show employers created 513,000 jobs, the
highest number in more than a quarter-century.

More than a third of the projected job gains are for the
2010 U.S. census, and private employers are expected to have
added payrolls by 190,000 last month.

“Weak sales and uncertainty continue to hold back any
commitments to growth, hiring or capital spending. Job creation
plans have been running far below comparable quarters in the
recovery from two other major recessions,” the NFIB said.

Stock Market Research Tools
(Reporting by Lucia Mutikani; Editing by Padraic Cassidy)

Small US businesses less optimistic on hiring