Businesses fail to find workers, and experts say federal policies have made it worse

Businesses fail to find workers, and experts say federal policies have made it worse

A new labor market survey found that a majority of employers, particularly restaurants, still cannot find enough workers.

The new report from Alignable said that 83% of restaurants can’t find enough workers. Overall, the report found that “63% of all small business employers can't find the help they need, after a year of an ongoing labor shortage.”

“Drilling into the most recent data on key sectors and demographic groups, the picture is even more disturbing,” the survey said. “Hiring issues have worsened again for key sectors, including restaurants, travel/lodging, event management, construction, and the automotive industry. Plus, minority business owners, as well as veterans, are experiencing elevated staffing problems.”

The Alignable survey comes as federal data show a record-high roughly 11.5 million job openings in the U.S., nearly two jobs for every unemployed person. Experts say a range of federal regulatory and economic policies have made the problem worse.

“Employers are struggling across all industries,” said Rachel Greszler, an economic expert at the Heritage Foundation. “The Administration’s policies contributed to these struggles and they’re making it worse. The combination of welfare-without-work benefits that are restricting the labor supply and many trillions of dollars in deficit financed spending – most of which has been money printed by the Federal Reserve – that’s artificially increased demand are largely to blame. These policies have fueled inflation.”

Employers have raised wages in recent months, but those wage gains have not kept pace with inflation.

Small Business by N/A is licensed under Wikimedia Commons N/A