It is no news that the surging inflation that was expected to reverse is not quite budging yet because of everything associated with the pandemic. Businesses and employees alike have had to figure out how to survive to keep up with inflation and overcome the last couple of years. They leverage to keep their company doors open as employees demand more income.
One of the top problems business owners struggle with today is a shortage of employees.
Approximately 50% of all business owners are experiencing unfilled positions at this time. Throughout the United States, the number of jobs available exceeds the number of unemployed workers. The great resignation was recorded in April 2021, with approximately 4.2 million people quitting their jobs for different reasons following the spread of the Delta variant. This added to the already large number of 11 million job openings, with only 6.5 million workers being hired between April and October 2021. This dramatic gap between job openings and new hires shows that businesses have difficulty filling open roles. This staffing shortage holds back company growth, and the labor costs are reported to be at a 48-year record high level.
This scenario creates pressure on compensation levels and produces a tight labor market.
Prices continue to increase, demand is high, and supplies are impossible to get or difficult to obtain on time. Many consequences of the pandemic, erroneous restrictions, ill-advised health guidelines, and illegitimate mandates are surfacing. Business owners are suffering as the conflict about the changing landscape continues.
Increased consumer spending is colliding with a historically tight labor market.
Most businesses are dealing with staffing issues when the demand has skyrocketed, prices keep going up, and supplies are hard to get. As expected, when a business’ performance decreases due to understaffing, it could translate to less satisfied customers and, eventually, lower revenue. According to a recent survey, at least three-fourths of companies are struggling to fill positions, and 82% are increasing wages by 10% to attract and retain quality staff. Records show that people who changed jobs saw average wage growth of 6.6% in September 2021, up from 5.1% in the first half of the year.
We provide business funding solutions to consider.
This 10% budget increase means that many businesses are now using their capital reserves or tapping into their revenue streams to increase working capital to remain competitive during the surge in demand for products and services.
Learn how to get business funding for your business with surging inflation equals getting a discount on the borrowed money.
Prices for your products or services are on a continuous skyrocketing roll, but the working capital we fund now will have the same cost as you pay back the loan. Contact our team today to learn how Alternative Funding Group can get business funding in your hands fast so you can have the funds you need to recruit qualified staff and keep up with the cost of goods.
