FAST FIVE: It Has Never Been More Difficult For Small Businesses To Fill Job Openings
As NFIB Chief Economist Bill Dunkelberg put it last month, “Main Street is doing better as state and local restrictions are eased, but finding qualified labour is a critical issue for small businesses nationwide.” He also explicitly admitted that Biden's “trillions” in stimulus are behind this predicament: “Small business owners are competing with the pandemic and increased unemployment benefits that are keeping some workers out of the labor force.” And for those readers quick to bash potential employers for being stingy and not simply raising wages to find qualified employees, a net 28% of owners reported raising compensation (up three points) and the highest level in the past 12 months, while another 17% plan to raise compensation in the next three months.
In other words, it has never been more difficult for a small business to find new hires.
“Finding qualified employees remains the biggest challenge for small businesses and is slowing economic growth.
Some owners are offering 'show up' bonuses for workers who agree to take the job and actually show up for work.” And some more statistics from the NFIB's Jobs Report: Ninety-two percent of those owners hiring or trying to hire report few or no “qualified” applicants for the positions they were trying to fill in April.
And with that we now await the latest JOLTs report, coming up in a few minutes, which we expect will reveal a number of job openings that is at or near all time highs, as all companies – not just small businesses – find it is impossible to compete with Uncle Sam's generous handouts.