America’s small businesses and entrepreneurs continue to shoulder the burden of inflation, supply chain disruptions, and labor shortages – all caused by the Biden Administration and their Democrat allies in Congress. Small businesses and entrepreneurs are the engines of the American economy. When our small businesses are strong, our economy is strong. Skyrocketing costs are proving to have a stranglehold over small business growth and their return to normalcy. Yet, this administration continues their habit of reckless spending and backwards priorities – clearly placing the health and growth of small businesses on the back burner.
The below May 2022 Small Business Snapshot features numbers and news updates to provide more insight into the current small business economy.
CONSUMER PRICE INDEX (INFLATION)
- The prices consumers paid for goods and services increased by .3 percent in April as compared to March, totaling an 8.3 percent increase when measured over the last 12 months.
PRODUCER PRICE INDEX
- Producer price index increased .5 percent in April and 11.0 percent year over year.
- At the end of March, businesses were unable to fill a record 11.5 million jobs and a record 4.5 million workers quit their jobs.
- 428,000 jobs were created in April, and the unemployment rate remained unchanged at 3.6 percent. 5.9 million Americans are unemployed.
LABOR FORCE PARTICIPATION RATE
- The labor force participation rate decreased to 62.2 percent in April.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
- For the week ending May 7, 2022, the Department of Labor reported that initial unemployment claims were 203,000.
PERSONAL CONSUMPTION EXPENDITURES PRICE INDEX (CORE PCE which excludes energy and food)
- Core PCE registered a reading of 5.2 percent in March when measured year over year.
BUSINESS FORMATION STATISTICS
- Business formation applications totaled 423,153 in April marking an increase of 1.6 percent over last month.
HIGH PROPENSITY BUSINESS FORMATION STATISTICS
- New businesses categorized as having an increased likelihood of having employees and a payroll, otherwise known as High Propensity Businesses, totaled 135,779 (an increase of 2.0 percent) in April.
- Consumer sentiment decreased to 59.4 in March.
COMMERCIAL AND INDUSTRIAL LOAN DATA
- Through April, commercial and industrial loans totaled $2.561 trillion.
SBA LENDING DATA
- The SBA approved a total of $13.4 billion 7(a) Loans through May 6, 2022.
NEWS YOU CAN USE:
Job Creators Network: “President Biden’s Clueless Remarks on Inflation Suggest Americans Should Brace for Stagflation and Recession” (HERE)
- “‘President Biden’s inflation crisis has gone from bad to worse. Bidenflation is causing declining real wages and living standards. This Biden pay cut is making life harder for ordinary Americans and small businesses.’”
- “‘As Americans’ savings and living standards get hammered, Biden is calling for more of the same spending and taxes that put the economy in this mess in the first place.’”
- “‘More broadly, the American people must recognize that Democrats’ big government economic agenda has been wholly discredited and a new free-market approach that puts small businesses first is needed.’”
National Federation of Independent Business: “Small Business Expectations for Better Business Conditions at Record, 48-year Low” (HERE)
- “Owners expecting better conditions in next six months drops as 32% cite inflation as number one business problem.”
- “Small business owners expecting better business conditions over the next six months decreased one point to a net negative 50%, the lowest level recorded in the 48-year-old survey.”
- “Forty-seven percent of owners reported job openings that could not be filled, unchanged from March.”
America First Policy Institute: “Correcting the Record on Job Creation” (HERE)
- “April was the 12th consecutive month of job growth in excess of 400,000. However, in the 9 months before Joe Biden was sworn into office (May 2020 to January 2021), job growth averaged nearly 1.4 million jobs per month. Despite job growth, U.S. non-farm employment remains 1.2 million below its pre-pandemic peak (February 2020).”
- “60.1% of the jobs created since the depths of the pandemic in April 2020 were created under the previous administration (12.5 million under President Trump vs. 8.3 million under President Biden).”
- “Despite assertions to the contrary, the U.S. did not see the ‘largest 15-month job gain in 15 years’ for manufacturing. In fact, though U.S. manufacturing employment increased by 545,000 over the past fifteen months of the Biden Administration, manufacturing employment actually grew more—by 927,000 jobs—in the 15 months before and including July 2021. The vast majority of that increase in manufacturing employment occurred during the Trump Administration (+761,000 jobs) and not during the Biden Administration (+166,000 jobs).”
Fox Business: “National Gas Price Average Hits New High on Sunday at $4.47 Per Gallon” (HERE)
- “The average price for a gallon of gasoline in the U.S. rose to a record Sunday morning to $4.47, according to the latest numbers from AAA. The price on Saturday was $4.452.”
- “Before Russia was hit with sanctions for invading Ukraine, threatening the already tight global oil market, the national average was at $3.53, according to Andy Lipow, the president of Lipow Oil Associates.”
The Wall Street Journal: “Rising Diesel Costs are Straining U.S. Truckers, Shipping Operations” (HERE)
- “Diesel costs are reaching new highs across the U.S., straining the operations of trucking companies and wrecking the transportation budgets of businesses that need to ship goods.”
- “The price of the fuel that powers heavy-duty trucks has increased by more than $1.50 a gallon in roughly two months, according to the U.S. Energy Information Administration. The national average price has climbed to $5.62 a gallon, setting a record for the second week in a row, as prices at the pump surpassed $6 in some markets.”
- “The costs are hitting smaller trucking fleets that make up the bulk of the highly fragmented U.S. trucking market particularly hard, worsening cash flows for businesses that tend to be lightly capitalized with little cushion to absorb sharp changes in costs.”