Record Shares of Small U.S. Firms Raise Wages, Plan to Boost Pay
(Bloomberg) -- A record share of U.S. small-business owners said they raised compensation in October and an unprecedented number are planning to in coming months as they seek to fill vacancies, the National Federation of Independent Business said Thursday.
Forty-four percent of firms boosted pay last month, up 2 percentage points from September and the largest share in monthly data back to 1986, according to the NFIB. A record 32% of small-business owners said they plan raised compensation in the next three months.
“The staffing shortage has not eased up for small businesses and many are passing those costs on to their customers,” Bill Dunkelberg, NFIB’s chief economist, said in a statement.
A gradual decline in the share of companies with unfilled positions in October shows the increased compensation may be starting to pay off. Some 49% had job openings, down from a record 51% a month earlier.
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