BountyJobs Blog

Small Businesses Turn to a Record Increase of Wages to Win the Talent War

Written by Erin Geiger | December 09, 2021

Small businesses have implemented the biggest percentage increase in hourly wages (since 2011, when the data was tracked). Businesses with less than 50 workers have had a $1.17 increase since November 2020 bringing the average hourly rate to $29.88. This marks a record 4.1% annual increase.

 

CEO Confidence has fallen in the midst of continued supply chain issues and labor shortages. The reading has fallen to a 65 after having been at an all-time high of 82 in Q2. However, readings above 50 still indicate more positivity than negative responses.

 

IT employment falls flat in November after seeing some recovery since August 2020. A scarcity of talent is to blame, though when looking at year-to-year growth, IT employment has increased 3.2%

 

Almost half (41%) of adults in the U.S. may be looking for a new job in 2022. As well, 35% say they are more likely to change careers entirely. The most important aspect to consider when looking at a change? 63% say the pay rate or salary Is tops.

 

Online gig platforms continue to have their day in the sun as 16% of Americans earn at least part of their income through gig work. Some popular roles are ride-sharing/hailing driver and grocery delivery.

 

U.S. jobless claims are seeing a 52-year low, falling by 43K from 184K. This is the lowest level for these claims since September 6, 1969. Another post-pandemic low, the four-week moving average of jobless claims fell by 21,250 for a result of 218,750.

 

After three months or record highs, the U.S. rate of workers quitting jobs decreased in October. Around 4.2 million workers quit their jobs in October, down from 4.4 million in September (and 2.8% of the workforce). Many industries saw the decline with transportation, warehousing, and utilities seeing the biggest difference – 57,000 less quits from the previous month.

 

With rising employee turnover comes rising costs. This attrition cost U.S. companies an average of $26,511 each year in lost productivity and recruiting. Around 42% of companies surveyed said that employee turnover had increased that year. As well, 21% of companies stated the replacement cost for employees was $50,000 each year or more.

Until next week,

Erin and Team BountyJobs