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The latest National Federation of Independent Business (NFIB) survey finds a continuing worker shortage at small U.S. businesses.
NFIB Chief Economist William Dunkelberg reports that “42 percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, unchanged from June. The share of owners with unfilled job openings far exceeds the 49-year historical average of 23 percent although it is 9 percentage points lower than the record high of 51 percent last reached in May 2022.”
Openings now appear to be especially plentiful for those above the entry level. Mr. Dunkelberg adds: “Thirty-six percent have openings for skilled workers (up 1 point) and 18 percent have openings for unskilled labor (unchanged).”
Across all industries, small companies share the common frustration of not being able to find enough workers, but they are not giving up the search. NFIB reports:
Owners’ plans to fill open positions remain elevated, with a seasonally adjusted net 17 percent planning to create new jobs in the next three months, up 2 points from June but 15 points below its record high reading of 32 reached in August 2021.
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Last edited by Lizap; 09-07-2023 at 10:43 AM..
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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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As a former small business owner myself for 16 years, I can understand the problem. They cannot attract people due to the inability to compete with the salaries and benefits offered by the big corporations. I was lucky because I had a business that offered experience and training for students at the local art institute, and while I had turnover when they graduated, there was a never-ending supply of qualified replacements. (I closed my business in the 2008 recession, and the Art Institute closed up in 2017)
I was paying a couple of dollars an hour above the fast-food/retail places, and for the one full-time employee paid toward her medical.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by NJ Brazen_3133
If these small businesses are hiring "skilled" workers they have to be able to pay them enough to keep the "skilled" worker from opening his own shop.
It is not a shortage of workers, but a shortage of owners who are willing to pay enough to attract them.
as an owner / employer of skilledworkers... It is impossible to pay what most think they are worth.
Occassionally you find someone who desires to do your work. Seldom do they leave to do their own gig. Especially if you assign them a role in HR, training, operations, bookkeeping, Accts payable (county, state, federal filing + insurance, rent, cash flows), payroll. They realize they are getting the bargain!
The tough thing is finding workers who can count, read a tape measure, layout cuts (fractions, use metirc!) operate equipment, communicate with other shifts, answer the phone politely.... drive YOUR vehicles safely (forget that). and today... finding a worker willing to get their hands dirty and... show up. (Mandatory in a shop / production environment, WFH is not possible)
Home prices dictate the minimum wage should be around $20/hour with the typical wage closer to $30/hour if you want home price to income ratios at historical levels... and this doesn't cut it in a lot of cities....it should be more like $40/hour. This is what happens when you overheat the economy with excess liquidity. Don't listen to modern monetary theorists who say deflation is the big boogeyman... these are the top 5 percenters who just want their stonk and home prices inflated to the stratosphere. Top and bottom suck from the middle.
We have such shortages here that some of the remaining employees are simply quitting from the increased workload. Engineering a recession would be healthy at this point. Tired of these damn MMTers. They are going to run the west into the ground.
as an owner / employer of skilledworkers... It is impossible to pay what most think they are worth.
Occassionally you find someone who desires to do your work. Seldom do they leave to do their own gig. Especially if you assign them a role in HR, training, operations, bookkeeping, Accts payable (county, state, federal filing + insurance, rent, cash flows), payroll. They realize they are getting the bargain!
The tough thing is finding workers who can count, read a tape measure, layout cuts (fractions, use metirc!) operate equipment, communicate with other shifts, answer the phone politely.... drive YOUR vehicles safely (forget that). and today... finding a worker willing to get their hands dirty and... show up. (Mandatory in a shop / production environment, WFH is not possible)
Of course, but there is a floor with which most workers will think they are not getting the most of what they should be. They will have to seek better.
Far too many got used to getting public assistance and stimulus checks. When you look at wages at the lower end of the scale, compare them to what one can get from public assistance, and it starts to come together. Also, many cannot pass a drug test, so choose criminal activities for their "wages".
We MUST tighten public assistance and have STRONG work requirements.
Another issue is that with Bidenflation, prices are continuing to go up. And, some are hiring illegals (welcomed by the current Administration to enforce our laws), and those that cheat the system can pay less and get away with it. So we need more enforcement of our laws regarding immigration. Wages are also reduced in an area when illegals are being hired, and then we, the taxpayers pick up the tab for their "emergency medical to include child birth", and once they get an anchor baby, we are supporting the family with government housing. Maybe taxes were not so high supporting this, employees could be paid more!
There are multiple reasons for this and why it will persist and most likely worsen.
Illegal immigration has negative effect on wages, especially lower skilled wages.
There is a income level at which you earn more by not working or limiting your hours worked to maximize your financial assistance from the government. That income level is now well above min wage rates in most places.
We are going to see more people leaving the workforce than new workers entering for a while.
Raise wages which will raise prices. Rinse, repeat. Who's getting ahead doing this?
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They realize they are getting the bargain!
, use metirc!) operate equipment, communicate with other shifts, answer the phone politely.... drive YOUR vehicles safely 
(forget that). and today... finding a worker willing to get their hands dirty 
and... show up. (Mandatory in a shop / production environment, WFH is not possible)
