Report: Big firms are laying off workers – but small companies are struggling to hire

Small business CEOs and CFOs are as worried about inflation, tight credit, banks going under and a looming recession just as bigger companies’ leaders are.

One of the widest differences in opinion is staffing. Large companies in a range of sectors, including technology, banking and healthcare, are laying off hundreds to thousands of employees.

Slashing payroll is really a no-brainer for bloated companies. HR and diversity, equity and inclusion positions top the list of jobs being slashed.

It’s a different story for small businesses. The most recent Small Business Economic Trends, published by the National Federation of Independent Business (NFIB) finds that:

• 43% have job openings they’re struggling to fill
• 34% have openings for skilled workers, and
• 19% have openings for unskilled labor.

“The difficulty in filling open positions is particularly acute in the construction, transportation, and wholesale sectors,” says the NFIB. “Openings are lowest in the finance sector. [emphasis ours] Owners’ plans to fill open positions remain elevated.”

Nearly 60% of small business owners who responded to the Trends survey said they tried to hire or hired one or more employees this past March. Nine out of 10 of this group “reported few or no qualified applicants for the positions they were trying to fill.”

‘We’ve got jobs! Anyone want ’em?’

Finding qualified workers to fill vacant jobs is a continuing problem for small and many mid-sized businesses since 2020. The good news: Small companies are rolling with the punches and aren’t as pessimistic about the economy as the talking heads on cable TV.

For example: 57% of small companies are spending capital to improve their businesses. The money outlays are going toward:

• new equipment (40%)
• vehicles (23%)
• improving or expanding facilities (15%)
• new fixtures and furniture (11%), and
• acquiring new buildings or land for expansion (6%).

The bad news: Just 20% of small business owners are planning to spend capital in the coming months. That’s a historically weak percentage, emblematic of business pros who see rocky seas ahead.

To read more of the March 23 2023 Small Business Economic Trends, click here.