Summer Hiring Brings Labor Problems to Main Street Business Owners

Small Businesses Struggle to Hire Amid Post-Pandemic Labor Shortage

The Hiring Struggle for Small Businesses

Small businesses are feeling the impact of a post-pandemic labor shortage, as they struggle to fill open roles and meet consumer demand. Factors such as a lack of affordable summer housing, childcare availability, inflation, and a rebalancing of work and life have resulted in a shift in the applicant pool. According to the National Federation of Independent Business (NFIB), labor quality was the most significant issue for nearly a quarter of surveyed members in May. Additionally, a significant percentage of business owners reported difficulty finding skilled workers, with the construction, transportation, manufacturing, retail, and restaurant industries reporting challenges.

Impact of Labor Shortage

The labor shortage is causing small business owners to raise wages and compete for a limited pool of workers. Some, such as Brendan McCluskey, are concerned about staffing opportunities for growth in a competitive landscape. The shortage drives wages higher, which may hamper small businesses already struggling to recover from the pandemic's financial fallout.

Attracting and Retaining Workers

Comprehensive immigration reform could help fill the gap in the labor market, according to industry advocates such as the National Restaurant Association. The group has urged Congress to strengthen visa policies and programs such as the Essential Workers for Economic Advancement program. This would allow workers to come to the US and fill market-driven roles on nonimmigrant three-year visas. Although there is no silver bullet to solving the recruitment challenge, legal foreign workers could help add to the workforce. Ensuring workers are happy and committed to their roles is critical, as small businesses are only as successful as their weakest link.

Consumer Spending and Small Business Resilience

While a slight pullback in consumer spending has been observed as shoppers watch their budgets more closely, small business owners such as Alison Schuch are determined to continue to operate with a long-term mindset amidst the staffing challenges. The resilience of small businesses will require a commitment to staff retention and the creation of a workplace that is enjoyable and focused on workers' well-being.
The post-pandemic labor shortage is posing significant challenges for small businesses across various industries. The struggle to find and retain skilled workers is resulting in businesses having to raise wages and compete for a limited pool of talent. Attracting and retaining workers is critical to the success of small businesses, and this requires a commitment to creating a workplace that is enjoyable and focused on workers' well-being.

For new businesses, the current labor market presents both challenges and opportunities. With labor quality being the most significant issue for small businesses, it is critical to consider the impact of the labor shortage on your business. It is essential to have a strategy in place for attracting and retaining talent, such as offering a competitive wage, flexible work arrangements, and a positive work environment.

As the job market becomes increasingly competitive, prioritizing employee satisfaction and retention will become even more crucial for small businesses. New businesses that focus on their employees' well-being and create a positive work culture will be better positioned to attract and retain the best talent in the market, contributing to long-term success. In conclusion, the current labor market poses significant challenges for small businesses, but those who prioritize their employees will have a competitive edge.