Inflation, Worker Shortage Are Top Of Mind For Employers And MSCI Data Products Can Help

New surveys by the National Federation of Independent Business (NFIB) and the Conference Board indicate that, at the outset of a new year, inflation, supply chain disruptions, and a shortage of workers continue to plague U.S. employers.

The NFIB’s monthly survey of small business owners found that while these leaders are optimistic about future growth, the trio of concerns are causing serious anxiety. When asked what issue is weighing on them the most, 22 percent of small business owners cited inflation as the single most important problem encountered in operating their business.

In a separate question, 49 percent of owners reported that their company has had job openings that could not be filled, an increase of one point from the NFIB’s November survey. As a result, 48 percent of owners reported raising compensation, a reading that was up four points from November and is at a 48-year record high reading. One-third of owners (32 percent) plan to raise compensation in the next three months. Thirteen percent of small business owners cited labor costs as their top business problem, up three points and a 48-year record high reading.

Read NFIB’s full report here.

A survey issued last week by the Conference Board has eerily similar results. As the organization explained, at the start of 2021, inflation barely registered on U.S. CEOs’ radars. Now it ranks second on their list of top worries. The CEOs surveyed also do not think inflation is transitory. In fact, 55 percent expect it to last into 2023 or longer. What ranks at the top of CEOs’ worry list according to the Conference Board? Labor shortages. Additionally, their top concern as far as international operations is attracting and retaining talent. Supply chain challenges rank third as CEOs’ top concern. Read the full Conference Board report here.

In related news: reporters with the Washington, D.C.-based publication Axios explored some of the causes of the U.S. labor shortage last week. According to their findings:

• There are about two million fewer working-age immigrants in the United States because of COVID immigration restrictions;
• There are 3.3 million more retirees as of October 2021 than January 2020; and
• About 1.5 million fewer mothers of school-age children are actively working compared with pre-pandemic times.

Read more here.

MSCI member company leaders can stay on top of inflation and other economic statistics by signing up to receive our Economic Opportunity and Risk Tracker, which, as of January 2022, is free with MSCI membership. Learn more here. As the competition for workers becomes greater, we also are helping members stay on top of compensation data. Our 2021 Production Employee Compensation Survey collects salary and compensation data for a number of production positions found in the metals industry. Learn more here.