As Many Companies Step Up Hiring, A Shortage Of Workers Could Dampen Growth
The Detroit Free Press reported that with Donald Trump’s victory in the presidential race, businesses are more confident about the future, and many “plan to step up hiring.” Still, many companies are maintaining their capital spending plans, waiting “to commit significant funds to new equipment or buildings until they’re assured that Trump’s blueprint will be passed by Congress.” The article pointed to the National Federation of Independent Business’ survey in November, which showed optimism among small businesses “soared after the election.” The article noted that after the election, “38% more small firms expected business conditions to be better in six months than worse,” whereas “before the election, 6% more of the respondents expected conditions to be worse.” Bloomberg BusinessWeek discussed the increasing jobs available, stating that “there’s plenty of consumer demand for goods and services.” However, the article stated that many companies “lack the workers to satisfy” consumer demand. A November survey by the National Federation of Independent Business found that “thirty-one percent of small businesses have jobs they can’t fill,” the article states. Economists suggest “strategic tax cuts, focused on fixing the supply side of the economy,” could help address the worker shortage.
What This Means For Small Businesses
While small business optimism grows, a worker shortage “could slow down the economy in the next couple years,” said Gad Levanon, chief North America economist at the Conference Board, a business research group. In a piece for The Hill “Pundits” blog, Karen Mills, a senior fellow with Harvard Business School, stated that small businesses “historically create nearly two-thirds of new jobs.” Mills emphasized that if the president and Congress enact economic policies that “reflect the intricacies of the worlds in which small business owners operate,” it “will ensure the economy continues to grow, innovate and create jobs.”
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.