The latest Freedom Economy Index (FEI) survey underscores a distressing economic reality where nearly 40% of small business employers report that a significant portion of their workforce is holding two or three jobs to make ends meet. This phenomenon, particularly prevalent among newer businesses, signals a broader issue of wage stagnation and inflation eroding purchasing power. Andrew Crapuchettes, CEO of RedBalloon, points out that this trend may explain the high job creation numbers in recent reports, as individuals are forced into multiple part-time roles to survive.
Further exacerbating the situation, the survey reveals a stark divide between younger and more established companies in terms of employee job juggling. Established businesses report fewer instances of employees needing multiple jobs, suggesting a disparity in stability and perhaps wages between newer and older companies. Additionally, the 'Great Resignation' continues to impact the labor market, with nearly 40% of employers noting frequent job switching among employees, indicating a lack of job satisfaction or security.
Another critical issue highlighted by the survey is the desire among small businesses, especially those in California, to relocate. With only 13% of California-based small businesses content with their current location, the majority are either planning or considering a move, hindered only by financial constraints. This sentiment is echoed by Michael Seifert, CEO of PublicSquare, emphasizing the challenges businesses face in high-cost states.
Crime has also emerged as a significant concern, with over 70% of small businesses reporting an increase in crime rates. This has led some to close locations, move, or consider moving, further complicating the operational landscape for small businesses. As the nation looks toward the State of the Union address, small business owners are calling for border security to be a top priority, followed by government spending and debt, and election integrity, reflecting their concerns over safety and economic stability.
Conducted from February 6 to 9, 2024, the FEI survey provides a comprehensive look at the challenges facing small businesses and their employees today. With responses from 840 small business owners, the findings underscore the urgent need for solutions to address inflation, wage stagnation, and crime to foster a more stable economic environment. For more details on the survey, visit https://PublicSquare.com and https://RedBalloon.work.
