Small businesses still struggling to find workers despite record-high compensation offered
SACRAMENTO, Calif., Nov. 4, 2021—In spite of record-high compensation being offered, the nation’s small-business owners are still plagued by a labor shortage, according to today’s release of the latest Jobs Report from NFIB, the nation’s largest and leading small-business association, a dilemma the association’s California state director hopes state policymakers don’t exacerbate.
“Add supply-chain disruptions and inflation to the continued bad news on unfilled job openings the report measured and there will be a lot less merry this holiday season,” said John Kabateck, California state director for the National Federation of Independent Business (NFIB). “California and Congress have done pretty much all they can on the loan front, so it’s a matter for the market to work itself out, which will take time and that is something politicians don’t like to wait for. In their hurry to do something, they can’t help but hamper budding recovery, especially here in California where the so-called progressive agenda has had to take a back seat to the pandemic. We expect to see that pent-up frustration unleashed in 2022.”
Editors Note: A few of those issues expected to be unleashed are mentioned in this NFIB California Podcast alerting small-business owners to the eight new laws taking effect in 2022 that they should be aware of.
Highlights from today’s Jobs Report
- Small business owners’ plans to fill open positions remain at record high levels, with a net 26% (seasonally adjusted) planning to create new jobs in the next three months.
- A net 32% of owners plan to raise compensation in the next three months, up two points from September’s record high reading.
- Overall, 62% of small employers reported hiring or trying to hire in October, down five points from September. Ninety-four percent of those owners hiring or trying to hire reported few or no qualified applicants for the positions they were trying to fill.
- Thirty-three percent of owners reported few qualified applicants for their open positions and 25% reported none.
From NFIB Chief Economist Bill Dunkelberg
“Small business owners continue to make business and hiring adjustments to help manage the busy holiday season. The staffing shortage has not eased up for small businesses and many are passing those costs on to their customers.”
NFIB’s Jobs Report is a national snapshot not broken down by state. The NFIB Research Foundation has collected Small Business Economic Trends data with quarterly surveys since 1974 and monthly surveys since 1986. Survey respondents are drawn from NFIB’s membership.
Keep up with the latest on California small-business news at www.nfib.com/california, where this release can also be read, or by following NFIB on Twitter @NFIB_CA or on Facebook @NFIB.CA.
For 78 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
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