About half of small firms are looking to hire someone, and over 60 percent that are looking to hire workers encounter some sort of hiring difficulty, according to a recent study, Labor Shortages, Needs and Related Issues in Small and Large Businesses . Advocacy Jere W. Glover announced the results of this recent SBA sponsored study at the Vision 2000 Awards Conference being held today and tomorrow at the U.S. Chamber of Commerce. Historically, a low unemployment rate has resulted in a labor shortage.
Large firms can easily compensate for the shortage by supplying higher wages and better benefits.
Small firms are now forced to do the same, however, most small firms cannot afford these extra employment costs and may have to slow their output growth. Currently, small businesses rank labor shortages above taxes and government regulations as their heaviest burden. A little more than a third of firms that had problems hiring sought an employee with computer proficiency skills, and only about a third were seeking someone with a bachelor's degree or higher education. However, about half of the firms looking to hire someone employed an individual less qualified than what they originally sought. The labor shortage has large implications for the macro-economy.