Small businesses battle inflation and workforce shortages

Posted under: SMB
Date: 2024-01-10
Small businesses battle inflation and workforce shortages

The US economy continues to be a source of concern for small businesses, with ongoing worker scarcity and relentless inflation feeding into their pessimism. A slight rise in the Small Business Optimism Index was reported for December, but the atmosphere remains gloomy. The National Federation of Independent Businesses (NFIB), the body representing small business owners, reported that the index saw a minor increase, reaching 91.9. However, this still falls well below the average of 98 that has been maintained over the past 48 years. The predicament faced by small businesses is compounded by enduring issues like inflation and worker quality. With inflation surpassing labor issues as the primary problem, owners of small businesses increasingly find themselves struggling. Inflation is still notably higher than the 2% goal set by the Federal Reserve, despite the significant drop from its 9.1% peak. Moreover, the worker quality problem is of paramount concern to 20% of business owners.

Read more at: retailwire.com