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Recruiting and retaining staff continues to be the biggest challenge for most small businesses in the United States. The North American country’s labor market is at its boiling point, but the imbalance already generates economic risks.
Other imbalances. Hundreds of small businesses face the challenge of hiring workers in the United States, according to the Goldman Sachs ‘Small Business Voices’ survey, which reflects the imbalances in the booming labor market in that country.
The firm surveyed 1,100 companies, of which 90% said they have difficulty recruiting qualified candidates for open positions and must offer better benefits or make do with limited staff to avoid a bigger hit from price hikes.
An unexpected recovery from the coronavirus economic downturn has seen companies scramble to bring back the workers they laid off in 2020 and find new candidates.
The survey also ensures that 88% of small businesses have more difficulties compared to larger corporations. Also, 42% of small firms say that they could not beat the offer of large companies and lost their employees.
But the increase in expenses to offer better conditions to their employees not only affects the results of companies, but also the ability to retain and attract workers.
In March, employers announced a record 11.5 million jobs. Thus, in the United States there are two vacancies for every unemployed person.
This week’s Labor Department report showed the number of people on state unemployment rolls was the lowest in more than 52 years at the end of April.
“The underlying message of a very tight labor market and employers unwilling to lay off existing workers in the face of extreme labor shortages has not changed,” said Conrad DeQuadros, chief economic adviser at independent investment bank Brean Capital. , In New York.
“This is great news for workers. The last 25 or 30 years have been good years for companies and their owners, and not so much for workers. But that has changed since the pandemic,” said Alberto Bernal León, director of Global Strategy at the financial services firm ‘XP Investments’.
According to the expert, “the important thing is to have pro-market, pro-business, pro-employment policies so that the economy can be maintained for as long as possible with maximum employment, because there is no worse tragedy than unemployment.”
Last week, the US Federal Reserve raised its official interest rate by half a percentage point, the biggest increase in 22 years, and announced that it would start cutting its bond holdings next month. The US central bank, which started raising rates in March, hopes to bring labor demand and supply back into alignment.
with AP
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