NFIB Chief Economist William Dunkelberg reports: [From the Wall St. Journal]
Small businesses continue to struggle to find workers to fill open positions. Forty-nine percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up 3 points from June and a record high reading. Unfilled job openings have remained far above the 48-year historical average of 22 percent.
Overall, 61 percent reported hiring or trying to hire in July, down 2 points from June. The issue will be whether the supply of labor will cooperate. Owners’ plans to fill open positions remain at high levels, with a seasonally adjusted net 27 percent planning to create new jobs in the next three months, down 1 point from June’s record high reading.
Operating almost like a law of physics, a labor shortage naturally and reliably motivates employers to increase the incentive for employees and potential employees to show up for work. Mr. Dunkelberg reports:
Seasonally adjusted, a net 38 percent reported raising compensation, down 1 point from June’s record high of 39 percent. A net 27 percent plan to raise compensation in the next three months, up 1 point from June and a 48-year record high reading. There is little an owner can do to attract needed employees other than offer higher compensation." Where Are the Workers? - WSJ
Wall St. Journal, "Where are the workers?" Aug. 5, 2021
Posts
