Small Business Finance News
Optimism Increases As Hiring And Salaries Decrease, Survey Said
Written by Jenna Weiner
Cost-cutting measures in hiring and worker compensation appear to be driving a spike in optimism among small business owners.
In small business finance news, a new survey shows that while the amount of workers hired and their salaries have decreased across larger metropolitan cities, optimism among small business seems to be increasing.
SurePayroll's Small Business Scorecard, which includes statistics for 34 metropolitan areas, showed that small business optimism increased from 52 percent in April to 75 percent in May. Even though optimism seems to be on the rise, the same survey reports a national loss of 2.3 percent in hiring and a decrease in salary of 0.3 percent per paycheck.
The survey used payroll data from the company's 32,000 customers, and focused only on responses from businesses with eight employees or fewer.
SurePayroll president Michael Alter said small businesses recovery is key to the economy getting back on track. Alter said that usually when hiring slows down, there will be a slow down in all sectors.
This report comes in contrast to the National Federation of Independent Business report from mid June, which said that small business optimism dropped in May by 0.3 points to 90.9. The report said this drop was fueled by weak consumer spending.
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