Small Business Optimism Spikes To Highest Since 1983, There's Just One Thing...

The NFIB Small Business Optimism survey hit this morning and it surged to near record highs...

 

With Small Businesses having never been so excited to hire people ever...

Construction, manufacturing and professional services registered notable increases in planned hiring. The figures indicate the recent solid pace of job growth will be sustained and help extend the economic expansion.

And, of course, President Trump was over the moon...

Which leaves us wonder, if everything's so awesome, why are only a net 17% of firms expecting compensation to grow in the next year...

Comments

JRobby New_Meat Tue, 12/12/2017 - 15:36 Permalink

Companies have gone short handed for a very long time. Too long. Many just holding on. They want to hire to take on increasing work that is starting but can't offer higher wages yet until the higher employment spending effect takes hold in a year or 18 months.The MSM know exactly zero about real economics. 

In reply to by New_Meat

Iconoclast421 New_Meat Tue, 12/12/2017 - 15:36 Permalink

That is the common preconception and I agree with it in most cases, but in this economy I dont believe that is what will happen. What will happen is that the increased worker competition will boost productivity, and then the productivity gains will boost wages enough to more than offset the wage pressures.

In reply to by New_Meat

Endgame Napoleon New_Meat Wed, 12/13/2017 - 00:24 Permalink

Single parents just work part time to stay below the [earned income limit] for free EBT food, free rent, monthly cash assistance and child tax credits up to $6,444.

That, and immigrants with a sole, male breadwinner, is what drives wages down. Employers have a large pool of workers with an incentive from government to accept low pay.

Another large group driving wages down is married moms, with their spousal income that covers major household bills, enabling them, too, to work for beans.

Then you have the elderly who are willing to work part time for low pay due to SS checks that cover their major bills.

In reply to by New_Meat

bonin006 Tue, 12/12/2017 - 15:28 Permalink

" if everything's so awesome, why are only a net 17% of firms expecting compensation to grow in the next year..."It is awesome for the businesses that don't have to pay their employees more due to what the government has done to the job market. (or maybe they are just delusional)

CHX13 Tue, 12/12/2017 - 15:33 Permalink

Food stamps are the modern bread lines, labor force is at a multi-decade low and debt is spiralling ever higher making daily FATHs. What's not to like about this "recovery" ?

LawsofPhysics Tue, 12/12/2017 - 15:40 Permalink

More "all time highs"now remind me, WHAT IS THE FEDERAL FUNDS RATE AGAIN?!?!?If everything is even more awesome, why the fuck do people in banking and finance still need free money?"Full Faith and Credit" ah, 1983...  ...I remember my father telling me about those CDs that yield 14% interest...