Researchers canvassing small businesses found that pay and price hikes are happening in tandem across economic sectors as the worker shortage persists into 2022.
According to a new survey from the National Federation of Independent Business, or NFIB, the net percentage of owners raising selling prices hit 61 percent — the highest since 1974, when inflation was rampant. A net 50 percent of owners are raising compensation, a 48-year high.
“We haven’t seen anything like this in our survey since the mid-1970s, and most small-business owners have never experienced anything like this,” said Holly Wade, the executive director of the NFIB Research Center. “For most small-business owners, this is a whole new environment they have to navigate — and it’s proving to be an incredible challenge.”
A survey published last week by Alignable, an online platform for small businesses, found that 60 percent of small businesses are struggling with labor shortages — and some sectors report even higher percentages. For example, two-thirds of restaurants and three-quarters of manufacturers report being unable to find workers to fill open positions, and a whopping 92 percent of assisted and senior living facilities are struggling to find employees.