Current Insights Regarding the Labor Shortage

The pandemic has “reshuffled the deck,” and NEBP is highlighting these insights from BizBuySell’s Insight Report for Q3 2021 – which covers the labor shortage and other topics.  Many people are reassessing their positions in corporate America and most respondents indicated that labor shortages have had a significant impact on their businesses. There are issues both in hiring and retaining employees. 

According to the U.S. Census Bureau, retail spending in September increased 13.9% over the previous year but many businesses still struggle to attract or retain employees. Half (49%) of owners say the labor shortage is impacting their business, while business brokers see it as the number one concern facing small businesses.

Because it has become common knowledge that employers are having trouble filling positions and are having to increase pay in order to attract new employees, existing employees themselves often expect – or demand – raises. In turn, operational costs are going up for many businesses.  

The fact is that the business owners are still selling and for a variety of reasons. BizBuySell’s statistics indicate that of owners who are planning to sell, 20% cite retirement as their main reason for selling, whereas 38% cite burnout as the primary reason.  Business sales transactions are up 17% over the last quarter but are still 7% below pre-pandemic levels. However, it is expected that the number of transactions will grow to be well above their pre-pandemic levels in 2022.

Buyers and sellers alike should remember that the pandemic has changed business and will continue to do so in the near future. In short, the business landscape continues to evolve. 

Copyright: Business Brokerage Press, Inc. and NEBP.


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