Detroit City Wire

Consumer spending is continuing its slow trend downward, but sales at small businesses remain above last year’s figures. Prices for supplies remain high, but it is only a matter of time before Main Street employers’ need for qualified workers overtakes inflation as their top challenge.

Month-over-month sales at small businesses in August declined 0.3% compared to July, while year-over-year sales grew 1.6% compared to August 2023. Spending increases in August were noted in food manufacturing, performing arts, truck transportation, and the spectator sports sector. Conversely, spending decreases occurred in educational services, insurance, ambulatory healthcare, and specialty trade contracting.

Further details can be found in the Fiserv Small Business Index published on September 6, 2024.

Small business owners continue to express frustration over the lack of qualified job applicants. In August, 40% of small businesses reported job openings they could not fill—2 points higher than July and significantly above the 49-year average of 23%. Additionally, 62% of small businesses hired or attempted to hire in August (5 points higher than July), with 90% reporting few or no qualified job applicants (4 points higher than July).

Looking ahead, only 13% of small business owners plan to create new jobs within the next three months—a decrease of 2 points from July. Compensation trends remained steady with one-third of businesses raising compensation in August and another fifth planning to do so within the next three months.

In terms of specific labor needs, skilled worker openings increased by four points from July to reach 36%, while unskilled labor openings slightly decreased by one point to stand at 15%. Notably, the construction sector saw a rise in unfilled job openings by five points from July to reach a total of 60%.

These insights are detailed further in the National Federation of Independent Business (NFIB) August Jobs Report published on September 5, 2024.