Small Businesses Expect More Hiring, Better Wages

(RTTNews) - U.S. small business expect to generate new jobs at higher wages, according to a survey by the National Federation of Independent Business.

The NFIB's Small Business Optimism Index rose 2.3 points to 100.4 last month, the highest reading since October 2006, well before a financial crash sparked the worst recession in generations.

In addition to new hiring, the small businesses plan increased capital outlays and business expansion plans.

A quarter of the 568 NFIB members reported job openings they could not fill in the current period, up 1 point from November.

"This anticipates a further reduction in the unemployment rate even if job creation is not especially strong," the NFIB said. The U.S. unemployment rate slipped to 5.6 percent in December, a sign of underlying improvement in the nation's economy.

Perhaps as importantly, a seasonally adjusted net 25 percent reported higher compensation for employees, up 4 percent from November.