Tuesday, June 30, 2009

Small Business Sentiment: Taking a Turn for the Better, or Will it be Doldrums for a Long Time?

Some data recently came out from the National Federation of Independent Business (N.F.I.B.) that the New York Times commented on, but we question the thoroughness of their analysis.  Since we have the ear of the small business community as well as job seekers, would love your input in the comments below, or if you don't feel comfortable commenting, send us an email at feedback@urbaninterns.com.  

Essentially, the Times writes that the outlook for small business owners is bleak relative to the last two years, with the percentage of SBO’s planning to expand in the next 3 months contracting from 16% in July 2007 to 5% in May 2009.  In addition, SBO’s expect sales to be down 5% in the next 3 months, whereas 2 years ago this number was up 16%; and hiring is expected to be down 5% in the next three months vs. up 13% two years ago.  In addition, consumer confidence fell in June after 2 months of gains, the Conference Board reported today and as part of the same report, the % of Americans saying that jobs are “hard to get” increased slightly month over month.  However, I don’t believe this data tells the full story.  In the SBO data, you have to look at the month over month numbers, and while the “screen shot” of it is bleak on its face, I am seeing ever so slight upticks and/or stability in May over April pricing plans (3% vs 1%), hiring plans (steady at -5%).  In addition, it’s not clear from either study whether this relates to just full-time work or part-time work as well.  Presumably, many SBO’s have cut full-time hiring plans but still need to hire hourly / contract workers or interns to keep the lights on.

What do you all think?  What are your hiring plans for full- AND part-time / interns for the next 3 months like?  Please post your comments below! 


Lauren Porat
Urban Interns

1 comment:

  1. I appreciate the labor you have put in developing this blog. Nice and informative.