Hiring up, hospitality sector leading the way

Jessica SarterSmall Business Lending

The unemployment problem in the United States has been the subject of many new reports, some of which have shown a trend of improvement. Small businesses, especially startups, have been the center of attention when it comes to hiring, as several organizations and federal agencies have upped efforts to boost small business lending.

Simply Hired – an employment website – recently released its August 2012 U.S. Employment Outlook, which showed job openings are up 4.5 percent from the month preceding, and nearly 10 percent from the same period in 2011. This, the firm noted, also continued the job competition rate of three unemployed persons per job opening.

“With nationwide job openings increasing for the third month in a row, we see an improved outlook for those who are unemployed,” Gautam Godhwani, CEO of Simply Hired, explained. “While there is uncertainty with the nation’s slow growing economy and whether the Federal Reserve may stimulate it in the coming months, it’s clear that companies across the U.S. are looking to hire in the meantime.”

The report records data from the top 50 major metro areas in the nation, which all experienced strong showings of new jobs opening up. Further, 14 of the 18 industries surveyed saw increases in hiring, led by hospitality – 11 percent year-over-year growth – which has been among the most recession-resistant sectors in the last four years.

The U.S. Small Business Administration and other entities have cited the importance of startups and small businesses as sources of employment, as the groups have combined to make up a disproportionate amount of hiring relative to their larger counterparts.

In 2010, the National Bureau of Economic Research released a report titled “Who Creates Jobs? Small vs. Large vs. Young,” which showed younger companies were among the biggest job creators in the country. According to the bureau, startups are responsible for 20 percent of job creation in the nation.

This has led to the variety of initiatives launched by the government and advocacy groups to boost small business lending and allow entrepreneurs to get their business ideas going. The hospitality industry has been among the best performers when it comes to overall health and new businesses started in recent years.

Between franchises and independent restaurants and other hospitality businesses, almost every report this year has shown gradual, but consistent growth in the sector, marking now as a good time to get a new hospitality business started. Though the availability of credit has seemed to tighten in recent months, there are options to improve the chances of acquiring a desirable loan.

If you are in need of funding to launch or expand your hospitality business, consider using a service like BoeFly. The firm only requires one loan application from prospective borrowers, and uses complex algorithms to match them with the best lending candidate for their specific needs. Additionally, with thousands of participating lenders, this is a highly effective method of obtaining financing.