As an expert in small business labor market trends and hiring, Holly Wade recently joined Bloomberg: The Close to share her insights. In the interview, Wade discussed NFIB’s March jobs report and gave a glimpse into the current state of the labor market on Main Street. She also provided an outlook on small business hiring and compensation for the upcoming months.
Wade highlighted that while labor pressures for small business owners have eased since the peak of 2022, there are still concerns about labor quality and costs. Approximately 18% of small business owners cite labor quality as their most significant problem, with another 10% highlighting labor costs. This indicates that over a quarter of businesses are primarily worried about labor-related issues.
Despite this, Wade noted that there has been a decline in the number of small business owners planning to hire in the next quarter compared to the last four months. This trend has brought hiring plans back to levels seen in 2016, signifying a significant decrease from the levels observed during the pandemic. However, she mentioned that despite this decrease, there are still high numbers of unfilled job openings – although they are lower than their peak.
Regarding compensation, Wade shared that many small business owners reported an increase in compensation in the last quarter compared to the previous one. Additionally, she stated that many owners plan to increase compensation in the next three months. These increases are historically significant and indicate a positive trend in small business compensation practices.
Overall, Wade’s insights provide valuable information on small business hiring and compensation trends and can help businesses make informed decisions regarding their workforce management strategies.
