struggle to hire workers as economy booms
economy faces in trying to reboot the workforce after COVID 19 lockdowns.
Small businesses are no hermes mens duffle replica
Data released this week by the National Federation of Independent Business (NFIB) found that a record high 48% of small business owners in May had unfilled job openings. Additionally, 34% of owners reported having to hike pay the highest reading in the past 12 months, and 22% more expect to do so in the near future.
“Small business owners are struggling at record levels trying to get workers back in open positions,” NFIB Chief Economist Bill Dunkelberg said in a statement.
“Owners are offering higher wages to try to remedy the labor shortage problem. Ultimately, higher labor costs are being passed on to customers in higher selling prices,” he added.
The NFIB’s data underscore how companies big and small are struggling to fill gaps in their labor force a dynamic that’s been battering industries across the economy, which is entering a new phase of strong growth after lockdowns.
As a result, many have had to raise wages in order to lure job seekers back to the workforce, and leave behind generous supplemental unemployment benefits that have been faulted for creating labor shortages.
According to the NFIB, small business owners are also struggling to find “qualified” employees for the positions they are trying to fill suggesting the problem isn’t just quantity but quality. Some 32% of owners reported few qualified applicants for their positions and 25% reported none, according to the report. Following over a year of restrictions due to the coronavirus pandemic, many jobs at restaurants, retail stores and bars remain unfilled, despite California’s high unemployment rate, causing some owners to fear they will not be able to fully reopen by the June 15th date California has given for a full reopening of the economy. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images)
Still, employers have cited a labor shortage as a critical factor behind why more jobs are not being created even as the post COVID rebound picks up speed. At least at the margins, an additional factor cited by some economists include child care issues.
In particular, hiring for hotels, restaurants, and other leisure businesses has only just started to turn around. The May jobs data showed a boost to employment and compensation in those sectors, as businesses hike pay rebuild lost staff.
Yet it is still unclear if the increase in money will be enough to close the employment gap in sectors hit hardest by the pandemic.
“It’s important to remember that before the pandemic we had a worker shortage,” said Bradley. “Today, as we exit the pandemic, the pandemic has exacerbated some of the underlying causes.”
Moreover, the costs of higher wages are more than likely to be passed along to consumers in the form of higher prices, exacerbating the sharp rise in prices seen across a range of goods and services in the last several months.
“I have [had] to increase my prices a lot,” said Dale Jackson, owner of Jackson Services Co., a plumbing and electrical company in Georgia. “We’re talking like 25 to 40% because I have to make up the difference in my overhead.”
Meanwhile the skills gap has forced business owners like Jackson to think more creatively about how to attract qualified talent. Recently, Jackson started a new incentive: Paying a referral bonus to help incentivize leads.
When Luceli Banda Medina, 21, the first woman in her family to read and write, left the poor, isolated northern Peruvian village of Puna to study nursing, she always dreamed what her life would have been like had she been born in a city. “Why do the people of the countryside not have the same ability to study as people in the cities, who have practically everything they need?,” Banda Medina, her father and mother family names, told from her adobe house in Puna. In a dramatic finish, with the Brumbies clinging to a two point lead, a Hurricanes try was disallowed because of a knock on in the lead up and fullback Jordie Barrett missed two potentially match winning penalties.