August 2024 Small Business Outlook

U.S. Chamber
Aug. 1, 2024

Reports of a softening labor market are a green flag for small businesses who have been trying to hire for several years. High wage expectations seem to be leveling off, which could be the catalyst for Main Street employers who need more employees to grow their businesses.

Summary: Overall small business employment in July increased by 0.03% compared to June.

• Month-over-month sales at small businesses in June dropped -2.9%, and transactions dropped -1.5%.
• Business transactions rose by 4.4% compared to last year.
• Spending increases in June came from insurance (rising premiums), amusement (summer foot traffic), and web-based content hosting (subscriptions).
• Spending decreases in June came from retail, accommodations, restaurants, ambulatory health care, and professional services.

Learn more about this data from Intuit QuickBooks Small Business Index, published Aug. 1, 2024.

U.S. Chamber
Aug. 1, 2024

Summary: There is still a worker shortage on Main Street, but expectations for higher wages have leveled off.

• 38% of small businesses reported job openings they could not fill in July (1 point higher than June and still far above the 49-year average of 23%).
• 57% of small businesses hired or tried to hire in July (3 points lower than June). Of those hiring, 86% of owners reported few or no qualified job applicants (1 point higher than June).
• 15% of small business owners are planning to create new jobs in the next 3-months (no change from the past 3-months which maintained the highest level for 2024).
• 33% of businesses raised compensation in July (5 points lower than June) and 18% of small business owners plan on raising compensation in the next 3-months (4 points lower than June).
• 32% of small businesses have openings for skilled workers (up 1 point from June) and 16% have openings for unskilled labor (no change from June).
• Over half the small businesses in construction (55%) have a job opening they can’t fill.

Learn more about this data from the National Federation of Independent Business (NFIB) July Jobs Report, published Aug. 1, 2024.