Small and medium-sized business owners are feeling more optimistic than they have in a long time, suggests a new survey, and experts say this could mean positive things for the overall economy — including for worker salaries and job candidates’ prospects.
According to the PNC Economic Outlook, optimism is at historically high levels across all categories assessed by the semiannual survey of small and medium-sized business owners. This is reflected in the 85% of respondents who chose a positive emotion to describe how they feel about the business climate over the next six months (as of the survey date): hope (39%), enthusiasm (37%), and joy (9%).
The survey also points to good news for the American workforce: 49% of business leaders expect to increase employee compensation in the next six months, and 32% plan to add full-time staff. However, four in ten respondents say it is harder to hire qualified employees today compared to six months ago, with the biggest challenge being a lack of experience or skills.
“Small businesses are a key source of economic activity and employment, and owners’ perceptions can be a good indicator of what’s to come,” says Gus Faucher, chief economist of The PNC Financial Services Group, Inc. “Our overall findings confirm that the U.S. economic expansion is likely to continue throughout 2018.”
Source: StatePoint