One of the most important factors in the small business world regarding strength in the marketplace is hiring. Recent surveys for the small business sector reveal that new job growth has been rising overall, though slower than expected, while small business owners are increasingly supportive of a new minimum wage.
10,000 new jobs
According to Fox Small Business, the first two months of 2014 saw a total of 10,000 new jobs added across the country. The news source noted that these small businesses had fewer than 20 employees at one time.
Almost all of the hiring took place in January, as no net job growth was noted in February. However, the latter month was said to be positive for workers already employed at small businesses, as they saw their hours and compensation grow slightly in the meantime by about 0.5 percent.
The only states that noted negative connotations from the survey were Idaho, suffering from little snow for its ski hills, and New Jersey, which saw no real changes. The Midwest and East Coast both saw problems, though they were most likely due to the extreme weather. During winter, many stores see declines in sales because of the cold.
Higher minimum wage supported
A purported problem standing in the way of increased hiring is a new effort to raise the minimum wage, but it's not likely that such a rise would harm new job growth. WAMC Northeast Public Radio reported that from 2009 to current day, about 57 percent of businesses supported the growth of the minimum wage to a new proposed total of $10.10 per hour. About 82 percent of those businesses said they already pay every worker more than the current minimum wage.
A representative from the National Employment Law Project told the news source that such as raise would bring $32 billion more into annually paid wages, while purchasing power would rise by $22 billion. A recent poll of the general population found 73 percent of Americans supported the raise. When it came to retail and restaurants, which would largely be affected by the change, 61 percent of owners reported that they were in favor of such an increase.
Another 35 percent of small business owners believed a wage increase would make their businesses more competitive in the hiring market.
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