Based on a national survey of small business CEOs, reducing the minimum wage would have the smallest positive effect on hiring among all policies. If the government does nothing, it will also hurt small business hiring.
The cause of high unemployment is not the lack of job skills, it is the lack of jobs. Almost 75% of the jobs that have not been restored are in construction, retail and manufacturing; 22% of the unemployed are black workers.
The unemployment crisis is primarily caused by our inability to create enough job creating innovative companies. In addition, to create jobs we need to first solve the housing crisis.
The Gazelle Index expects to see significant hiring in 2012, growth projected at 3% and unemployment at 7.8%. Corporations are starting to invest, consumers are spending more, housing starts are improving.
The major objective for most small businesses is to improve business-to-business sales. Increasing on-line sales is not as important, however government sales are very important to blacks and Hispanics.
The recent increase in housing starts, decrease in new claims for unemployment compensation are positive signs that Europe’s debt problem is not affecting US growth.
The Paryoll Tax Extension bill finally passed Congress, but the arguing among Republicans and Democrats is hurting small business confidence–63% said it is making them more pessimistic.
The recession hurt employment in Hispanics/Latino-owned small businesses more than it did for any other race or ethnic group; 55% of Hispanic businesses cut their work force while 29% cut it by 50% or more.
Two decades ago, European countries were very critical of Latin American and African countries that were saddled with tremendous debt. Now, Europe is facing the same problem–the chickens have come home to roost.
According to the Gazelle Index, more than twice as many small businesses plan to hire workers than to lay off workers over the next three months. This is true for businesses owned by blacks, whites, men and women–but not for Hispanic/Latinos.
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