The latest findings from the Freedom Economy Index (FEI) survey, conducted by PublicSquare and RedBalloon.work, shed light on the pressing economic challenges confronting small businesses and their employees. Nearly 40% of small business employers report that a significant portion of their workforce is engaged in two or even three jobs to make ends meet, a situation exacerbated by inflation and stagnant wages. This trend is more prevalent among younger companies, indicating a generational divide in workforce stability.
Andrew Crapuchettes, CEO of RedBalloon, pointed out the implications of these findings, suggesting that the robust job creation numbers in recent government reports may be misleading, as they reflect individuals piecing together multiple part-time jobs rather than securing stable, full-time employment. The survey also uncovered a stark contrast in employee mobility between newer and more established businesses, with the latter experiencing less turnover.
Another critical issue highlighted by the survey is the 'Great Resignation,' with nearly 40% of employers noting frequent job switching among employees, while only 11% observed a stabilization in employee tenure. This ongoing volatility in the labor market poses significant challenges for small businesses striving to maintain a consistent and skilled workforce.
Geographical dissatisfaction among small businesses, particularly in California, is another concerning trend. A mere 13% of California-based small businesses are content with their current location, with a overwhelming majority expressing a desire to relocate. However, financial constraints prevent many from making this move, as Michael Seifert, CEO of PublicSquare, metaphorically noted.
Crime has also emerged as a significant concern, with over 70% of small businesses reporting an increase in crime rates. This has led some businesses to close locations or consider relocating, further complicating the economic landscape for small enterprises.
As small business owners look to the future, border security tops their list of priorities for President Biden's State of the Union address, followed by government spending and debt, election integrity, inflation, and foreign policy. The FEI survey, which gathered responses from 840 small business owners, underscores the multifaceted challenges facing the small business sector and the broader economy. Addressing these issues is paramount to ensuring economic stability and growth.
