Want to add jobs? Hike business sales - Jan Norman on Small ...

Want to add jobs? Hike business sales

September 5th, 2011, 6:00 am ? 47 Comments ? posted by Jan Norman, small-business columnist

Despite government efforts to stimulate job creation with tax breaks, small-business owners have said they have to see improvement in their revenues before they feel comfortable hiring again.

Now Sageworks Inc., an analyst of private companies? finances, shows there really is a correlation between business sales and unemployment.

Source: Sageworks Inc.

Over the past eight years, sales growth at privately owned businesses has moved in inverse relationship to the nation?s unemployment rate. ?When sales were down, unemployment was up,? Sageworks says.

In August, the unemployment rate was 9.1%, the Bureau of Labor Statistics says.

What should we expect?

?Currently, privately-held businesses are seeing a sales growth of 6.89% for 2011.? If the relationship holds, as these sales figures continues to go up, hopefully unemployment will go down,? Sageworks says.

Sales are on the rise again, 6.89% in 2011 and the unemployment rate is 9.1%. Not great but both heading in a positive direction, according to Sageworks data.

However, the monthly small-business survey by the National Federation of Independent Business isn?t too optimistic on that score.

For the September report, the net percentage of owners reporting higher nominal sales over the past 3 months lost 1 percentage point, falling to a net negative 8%. Over the next three months, 10% plan to increase employment (down 1 point from the previous month) and 11% plan to reduce their workforce (up 4 points), the NFIB report says.

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Source: http://jan.ocregister.com/2011/09/05/want-to-add-jobs-hike-business-sales/63591/

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