The National Federation of Independent Business (NFIB), citing its Monthly Jobs Report for July, said a tight labor market remains the biggest problem small businesses face. It rose in June from an 18-year low of 3.8% in May.
As The Washington Examiner noted, the number is just slightly below the previous record of 4.6 percent set in July.
After two months of dependable United States jobs growth, the labor department reported a touch of lethargy in the sector on Friday, with nonfarm payroll jobs increasing to 157,000 in July - below the 190,000 anticipated in a survey of Reuters economists. "This is an issue not just for the US, but in every other developed market".
A quirk in the calendar may explain why average hourly wages inched up only 7 cents from June to July, explained Josh Wright, chief economist at software firm iCIMS: The Labor Department surveys employers at a different time than when companies pay their workers.More news: Jurgen Klopp considering surprise start for Xherdan Shaqiri in season opener
Nonfarm payrolls increased by 157,000 jobs last month, the Labor Department said on Friday.
"It is unbelievable that at this point in a recovery you are seeing growth that is on average faster than the previous two years", she reportedly said. It ticked up to 6.6% from 6.5% for African-Americans after hitting a record low in May but fell to 3.4% for whites, its lowest since 2000. Faucher writes that as that happens, job growth will slow down because businesses will find it more hard to recruit new hires.
"Congress and the administration have taken important steps in recent weeks to tackle this challenge, but this jobs report is a reminder that more work needs to be done through partnerships with the private sector to solve the workforce crisis", she said.
Another month of sluggish wage gains could help cool fears the economy could be overheating but are unlikely to dissuade the Federal Reserve from raising interest rates next month for the third time this year.
Employers in the manufacturing sector extended a strong streak of job gains, suggesting that trade disputes hadn't yet weighed on hiring decisions in a major way. As usual, ambulatory healthcare services dominated healthcare hiring with its 9,900 new jobs, although that was a 27% drop from the 13,500 jobs added in June. Mining, wholesale trade, transportation and warehousing, information and financial activities remained mostly flat, the BLS said. This is 1.9 percentage points below its year-ago rate.