U.S Small businesses less optimistic on hiring

WASHINGTON, US: Weak sales will keep hiring by small U.S. businesses subdued for a while even as their larger counterparts increase payrolls, according to a survey on Thursday.

The National Federation of Independent Business (NFIB) said its measure of average employment per firm recorded a seasonally adjusted loss of 0.5 workers in May. The measure has been negative every month since January 2008.

It also noted that most of the 823 businesses in the survey, conducted through May, reported they did not change employment, while 8 per cent increased average employment by 2.5 workers.

However, about 20 per cent reduced their workforces by an average of 4.0 employees.

The survey was published ahead of the release on Friday of the government's closely monitored employment report for May, which is expected to show employers created 513,000 jobs, the highest number in more than a quarter-century.

More than a third of the projected job gains are for the 2010 U.S. census, and private employers are expected to have added payrolls by 190,000 last month.

"Weak sales and uncertainty continue to hold back any commitments to growth, hiring or capital spending. Job creation plans have been running far below comparable quarters in the recovery from two other major recessions," the NFIB said.