Although many American small businesses report that they are nervous as a result of the government shutdown, they are, nonetheless, hiring. The National Federation of Independent Business has reported that small business owners have added an average of .11 workers per firm in the past month. This is in contrast to the downsizing seen in September.
Many small businesses were hit by the government shutdown, with an estimate that the 16 day shutdown could have taken as much as .6% points from the fourth quarter GDP growth.
Friday the government is expected to release a comprehensive employment report for October. It is predicted that the report will show that the shutdown held back hiring. Approximately 9% of businesses, which is the smallest share since 2006, reported that they laid off an average of 2.8 workers. The NFIB said, “Reports of workforce reductions have reached sub-normal levels. But owners report sub-par levels of hiring, so job growth remains anemic.”