U.S. small business optimism grew for the 18th consecutive month in May as compensation increases hit a 45-year high, the National Federation of Independent Business said in its latest monthly survey.
The NFIB's Index of Small Business Optimism climbed to 107.8 in May from 104.8 in April, the survey showed.
The 18-month streak is leading to more hiring and raising wages, according to NFIB's Chief Economist Bill Dunkelberg. "While they continue to face challenges in hiring qualified workers, they now have more resources to commit to attracting candidates," he added.
A net 3% reported positive profit trends in May, the best reading in the survey's history. The percentage of small businesses planning capital outlays in the next few months was 30%.
Finding qualified workers was cited as the single most important business problem by 23% of owners, followed by taxes and regulations, by 17% and 13% of owners, respectively. Hiring or attempting to hire was reported by 58% of owners in May, with 83% reporting few or no qualified workers.
To attract workers and compete in the job market, 35% of owners reported increases in labor compensation.
