Hi everyone, and welcome to this episode of Ignition Time.
Small businesses are struggling to hire across the country.
Welcome to this episode of Ignition Time.
And I'll tell you why this is so important
and why it has critical yes, it has critical of implications
for the future of the economy and for the ability of the economy to recover.
Here's a big reason I'll jump into it right away.
A lot of small businesses are finding it hard to maintain workers and to retain
workers primarily because the larger employers who can actually pay more money
are now attracting and poaching workers because workers can work remotely.
So let's say you work in a small town,
but what if a larger employer from another
town give you the opportunity to work remotely and offered you more money?
You're likely to say yes
and that would mean that the smaller
employers, the smaller local employers, are likely to suffer.
Here's an article on your screen from The Wall Street Journal,
and as always, we will provide you with a link to all
of our references in the description section below.
Small businesses fall behind on hiring as inflation takes a toll.
In fact, companies with under 50 workers
actually lost individuals in three of the past four months.
Folks, this is absolutely dangerous
because the driver of the American economy is small business.
Small businesses that hire local workers drive the American economy.
And basically, small employers are finding it difficult to keep up with wages
and benefits because more and more people want higher wages and higher benefits.
In fact, small businesses are losing ground in the hiring game.
And this is a quote from The Wall Street Journal,
owners of many small businesses say that inflation has added to the pressures
of an already tight job market making it increasingly difficult to keep
pace with the wages and benefits offered by larger employers.
In fact, this is crippling small
businesses and causing small businesses to potentially shut down across the country.
In fact, at Gahlsdorf Logging Inc, which is a company in Rickreall, Oregon,
and the head count there is actually stuck at around 20.
And this is a logging contractor saying
that they can barely keep their eight person crews fully staffed.
Think about that for a second.
An eight person crew cannot be fully staffed.
In fact, according to Mr. Gahlsdorf, he said this, if we keep retreating from this problem,
we will never solve it, and that will be the end of my business.
If we just hang on, we will be in a better spot.
So businesses across,
small businesses across the country are actually struggling.
In fact, 63% of small business owners say that hiring challenges are actually
affecting their ability to operate at full capacity.
And this was according to a June survey of more than 823 small businesses.
Think about this for a second.
Small businesses, the backbone of the American economy,
they simply are not able to hire.
And at the same time,
some large companies saw significant growth during the pandemic.
And now larger companies are also,
not only are they poaching employees from smaller employers,
but they're also taking a more cautious approach towards hiring.
And this, by the way,
may create opportunities for small employers to boost their ranks.
According to the ADP chief economist
Nela Richardson, small firms are still playing catch up.
And if the economy weakens,
small firms are also likely to change their hiring plans.
So think about this for a second.
Small businesses are continuing to hire.
Large businesses are taking a cautious approach
and if small businesses also start to take
a more cautious approach, the jobs will be gone.
And that is why you need to be aware of this.
And I'll actually give you a solution
towards the end of this video if you're out there looking for jobs.
So make sure you watch this video all the way to the end.
But again, the fact that small businesses could potentially go out
go out there and potentially stop hiding is a very scary proposition indeed.
So let's move on to part two of the video.
As you can see, the sun is shining on me.
The sun is to my left, shining right on my face.
All right, so here's what's going on, everyone.
Like companies of all sizes,
small businesses are spending more to attract and retain workers.
76% of small business owners say they had boosted wages in response to labor market
challenges, while 44% reported adding employee benefits.
Now, what this means is that small businesses are doing absolutely everything
in their power to attract, to attract workers.
They're offering not only wage increases, but they're offering all sorts of benefits
as well to try and get people to come in and work for them.
And guess what?
It's becoming harder and harder to actually find people to work.
This is an unbelievable situation in the American economy,
where inflation is at a 40 year high, gas prices are higher than they've ever been.
We've finally started to recover from the pandemic,
but it's almost like the world is going crazy, and people don't want to work
because people are now becoming more and more and more
I don't want to use the word fussy, but people are becoming more and more
precise, more and more particular about the kind of job that they want.
And they don't necessarily want to go back
and work with the small employers that they worked with before.
A lot of individuals,
specifically individuals in travel, leisure, entertainment, and hospitality,
decided to quit at the end of the pandemic.
A lot of individuals who worked
with employers for 20, 30, 40 years have now started to say, hey, guess what?
I don't want to do the same job anymore.
I want to do something different.
And what that's doing is creating a very strange situation
in which a lot of individuals are having essentially a new beginning, a new career.
I don't know if you guys can hear
the birds, but it's really nice being out here.
But a lot of individuals have a new career,
a lot of individuals are wanting to do
something new, wanting to essentially learn new skills, work with new employers,
work remotely, have more job flexibility, have more time with their family.
Essentially, individuals want to do new things
and this really is a new American economy.
I have a question for you, my viewers and subscribers.
Are you one of those individuals who is not going back to your previous employer?
Are you one of those individuals who has essentially been poached,
who essentially has been pulled away from your small employer?
Or have you essentially decided, hey,
I'm not going back to the job I did for a long time before the pandemic?
The funny thing about the pandemic
and the funny thing about the world today, because the world has changed dramatically
in the past two and a half years, the funny thing about the world today is
what used to be the old normal is no longer the new normal.
In fact, there is no new normal because
we're all searching, we're all looking for something new.
We're all expanding to new frontiers,
which is a good thing in many ways, but it's a bad thing for the old economy.
It's a bad thing for old employers who are
not quickly adapting or who are not trying to adapt and trying to retain employees.
Because if a business does not adapt and doesn't evolve with the times,
doesn't evolve to say, oh, my God, this is what I need to do to attract
employees, maybe I need to change my service offering to be able to continue
attracting customers, the old businesses will unfortunately go
out of business, and that is exactly what is happening.
Let me know whether you agree or disagree with this new assessment of this new
economy where small businesses are going out of business.
Yes, you heard that right.
Small businesses are going out
of business, and new businesses, larger businesses are taking employees.
But what is potentially a more dangerous
trend, like I pointed out at the start of this episode of Ignition Time, is that
a lot of large businesses are starting to cut back on hiring.
And if they cut back on hiring, potentially small businesses can as well.
And if that happens,
we could see a very deep, a very scary, very dangerous form of unemployment.
Not pandemic related unemployment,
but more of an economic structural related unemployment that could lead to a lot
of low skilled workers being left behind potentially permanently.
I hope that doesn't happen,
but that is a real risk to the American economy in the future.
Let me know what you think in the comments section below.
My name is Dr. Nitin Chhoda.
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Take care. Bye.