(Bloomberg) -- The share of US small businesses raising compensation dropped in July to the smallest in more than three years, adding to evidence that inflationary pressures stemming from the job market are diminishing.
A net 33% of firms said they boosted pay last month, down 5 percentage points from June and the least since April 2021, according to data out Thursday from the National Federation of Independent Business.
The share of companies planning to raise worker compensation in the next three months fell 4 points to 18%, matching the lowest reading since March 2021.
A net 15% indicated they expect to hire in the near term, unchanged from the prior two months. Overall, 57% said they added workers or attempted to hire, down 3 points from the previous month.
The government’s July employment report on Friday is expected to show a moderation in job growth.
Results of the NFIB survey were based on 1,309 respondents during the month.
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