While there is a sense of hope for American business owners following partly due to the regulatory reforms done recently, a reduction in corporate tax and an economy that is steadily getting better, there are also concerns about the availability of skilled workers which the companies require for their growth as retirements reduce the workforce of efficient workers. This was the conclusion of a JPMorgan Chase Business Leaders Outlook report.
“This trending positivity is confirmation that something real is happening in the economy,” said Jim Glassman, senior economist at JPMorgan Chase. “Business optimism translates to business activity, which is why we’re seeing increased expectations across the board. For businesses that can hire and retain talent in today’s tight labor market, there are growth opportunities to capitalize on.”
The shortage of qualified candidates is a cause of concern for all businesses irrespective of their size. While 45 per cent of the executive from midsize companies are either extremely or very concerned about the shortage, there were 31 per cent from the of small business who borne the same feelings as found in the survey.
However, there is increased optimism this year compared to the last year among executives from the midsize companies. 69 per cent of executive from this segment are optimistic about the overall outcome of the global economy which is nearly double of what was found in a similar survey a year ago. This also noted the highest such sentiment ever since the survey had been initiated eight years ago. The U.S. economy is seen with optimism by 89 per cent of the respondents which is 9 per cent higher compared to last year. The future of local economy enthused about 75 per cent of the respondents which is 7 per cent higher compared to a year ago.
51 per cent of executives in the small business sector were optimistic about the global economy which is the highest in several years. The national economy and the local economy was seen a optimistic by 63 per cent and 60 per cent of the respondents respectively from the small business sector.
Spending on hiring and pay is planned to be increased by most in mid-sized business in the U.S. 64 per cent said that they would enhance hiring of full-time personnel which is 7 per cent higher compared to last year while compensations would be increased by 76 per cent of the respondents which is 5 per cent more than last year.
But the rates are more likely to be maintained by most of the executive belonging to small businesses. No alteration to full-time personnel and compensation would be done by them, said 65 per cent and 56 per cent of the respondents respectively.
The survey was conducted by JPMorgan Chase online among 1,685 executives from midsize companies with yearly revenue between $20 million to $500 million) and 955 small business leaders ($100,000 to $20 million) in the United States
Business Leaders Outlook survey was conducted online in January 2018 with 1,685 executives of midsize companies (annual revenue of $20 million to $500 million) and 955 executives from small business with revenues between $100,000 to $20 million in the United States. The survey was conducted in January.
(Adapted from Businesswire.com)