As Amazon, McDonald’s Raise Wages, Small Businesses Struggle to Keep Up: Companies forgo investment and turn down contracts as they compete with jobless benefits and wage increases at larger firms
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U.S. companies of all sizes are struggling to fill jobs as surging demand and a reluctant labor force have resulted in a shortage of available workers. Some of the smallest firms said they are feeling acute pain because they have fewer people to pick up the slack and can’t easily match the pay increases, benefits and other perks that larger companies are offering to fill openings. The situation is only expected to become more difficult for business owners such as Mr. Johnson, who said his 20-person company needs to double in size over the next six months to a year.
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More than two-thirds of small businesses reported having a hard time finding qualified workers, according to a monthly survey of 611 small firms for The Wall Street Journal by Vistage Worldwide Inc. At the same time, they are planning for their workforces to grow. According to the survey results, 75% of small businesses are expecting their head counts to rise over the next year.
Businesses with fewer than 20 employees saw employment grow 13.5% last month compared with a year earlier, while businesses with between 20 and 49 employees saw it rise 15.9%, according to data from the ADP National Employment Report. Businesses with 1,000 or more employees saw employment growth of 7.3%.
Mark Zandi, chief economist at Moody’s Analytics, which collaborates on the ADP report, said that while small businesses can compete when it comes to hiring workers, they pay a heavier price for unfilled positions.
“If they don’t have that person, they lose the sale,” Mr. Zandi said. That isn’t necessarily the case at a bigger company, he added.
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Companies cite several reasons for the struggle to lure Americans back to work, including fear of becoming sick with or spreading Covid-19, lack of child care and enhanced unemployment benefits that exceed what they would be making at available jobs. Small-business owners said unemployment benefits and a lack of applicants with the right skills are among the factors keeping them from filling jobs.
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