Survey says small business are increasing worker compensation rates

Compensation levels increased to their highest total since December 2000, according to the National Federation of Independent Business’s (NFIB) Job Report for October 2017.

“Owners are raising compensation at rates not seen since 2000 when a record 64.7 percent of the adult population had a job compared to around 60.0 percent today,” NFIB Chief Economist Bill Dunkelberg said. “October’s report shows a strong jobs month buoyed by the increase in demand for workers to deal with the hurricane damage.”

Specifically, the latest report found that 27 percent of small business owners surveyed said they increased compensation for workers, while 21 percent stated that they plan to do so in the coming months.

Also, the NFIB Jobs Report stated that the adjusted average employment change per firm remained steady at -0.17 for small businesses.

In addition, 59 percent reported hiring or trying to hire workers in October. However, 52 percent of small business owners said they could not find qualified workers. To close that skills gap, 21 percent of respondents said finding qualified workers was their chief concern.

“Small business owners are seeking to hire workers to meet the demand, but the skills gap continues to grow, especially in construction and manufacturing industries,” Dunkelberg said.