Inflation is taking its toll.
Data shows that companies with 50 workers or less have lost employees and face hiring difficulties over three of the past four months. Keeping pace with wages and benefits packages in the days of inflation are cited as significant reasons.
The National Federation for Independent Business (NFIB) monthly Small Business Optimism Index shows small businesses squeezed by inflation, the tight job market, and the shift in monetary policy by the Federal Reserve.
“Small business owners are struggling to deal with inflation pressures,” said NFIB Chief Economist Bill Dunkelberg. “The labor supply is not responding strongly to small businesses’ high wage offers and the impact of inflation has significantly disrupted business operations.”
“The net share of small businesses planning to increase their staff over the next three months rose six points in May to 26, matching its high for the year,” economists at Wells Fargo said. “Moreover, 51% of small business owners reported they had job openings they could not fill, up four points from the prior month and matching the all-time high for the series.”
As the Lord Leads, Pray with Us…
- For discernment for Chairman Powell as he heads the Federal Reserve Board.
- That Secretary Yellen and other officials in the Treasury Department seek God’s guidance as they implement the president’s economic policy.
- For small business owners who are looking to hire staff and facing the challenges of inflation.
Sources: Wall Street Journal, US News & World Report
