Small Business Growth to Have Major Impact on Broader Economy

The national economy’s recovery from the effects of the recession has been slow but steady over the last few years, and many of those steps forward have been reflected in the bottom lines for small businesses across the country. That positions the economy to continue improving at a more rapid rate.

The ability of small businesses to expand and hire is actually very crucial to continued economic recovery, meaning that the fates of both that sector and the total state of the U.S.’s finances are very closely intertwined, according to a report from Reuters. Fortunately, new data suggests that many owners now believe they’re going to be in a good position to succeed in the coming months because of the economic improvements, and that in turn will likely mean that many are able to take on more workers going forward.

The latest data from the U.S. Department of Labor likewise suggests that the number of job openings nationwide is now at the highest level seen since August 2007, when the recession was really only just beginning, the report said. The number of available openings is often seen as being a fairly good indicator of the state of the job market as a whole, and when it continues to grow to pre-recession levels, then it may be possible for many experts to see a light at the end of the tunnel in terms of getting the economy back to normal.

“Jobs are available,” Millan Mulraine, deputy chief economist at TD Securities in New York, told the news agency. “The economy is creating jobs at a fairly robust pace and there is every indication that will be sustained.”

How significant is this?
In all, it’s believed that the number of unemployed people versus the number of open jobs is currently at about 2.19-to-1, more or less the average seen from the entirety of the pre-recession boom years of 2000 to 2006, the report said. That, in turn, could lead to a certain amount of improvement in terms of what workers are being paid per hour going forward, which may indicate overall business health.

Owners who want to position their firms to improve most significantly might also want to make an effort to cut costs going forward, perhaps including those for small business insurance. Finding more affordable errors and omissions insurance coverage, for instance, could save thousands annually.

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