Small Virginia businesses more optimistic, but unable to find qualified workers
(The Center Square) – Small business owners in Virginia have begun to feel more optimistic about their future with the reduction in COVID-19 restrictions, but they are struggling to find qualified workers, according to the National Federation of Independent Business.
“Virginia’s small businesses are working hard on their recovery but are struggling to find the right workers to fill open positions,” NFIB Virginia State Director Nicole Riley said in a statement. “It is important that Virginia lawmakers keep small businesses a priority and focus on policies that will strengthen job growth and not hinder the small business recovery.”
The national Small Business Optimism Index, put out by NFIB, found the businesses optimism increased 2.4 percentage points in March to 98.2. Alternatively, the NFIB uncertainty Index rose six points to 81, mostly because owners are less certain about whether it is a good time to make capital expenditures or expand their business.
According to the NFIB’s monthly job report, 42% of owners reported job openings that could not be filled, which is a record high. Riley told The Center Square that this is partially because some workers are worried about going back to work during the pandemic and others are earning more money than they would working with the increased unemployment benefits.
The best way the state can improve these numbers is to increase access to the vaccine and get workers vaccinated, Riley said. One of the biggest hurdles, she said, is the vaccine demand is much higher than the current supply. This is particularly important to ease the concerns of workers in industries that have to interact with their customers, she added.
Virginia should also use federal relief money to offset the losses in the unemployment insurance fund, rather than raise the unemployment insurance taxes on businesses, Riley said. The last thing the commonwealth should do is increase the cost of doing business, particularly for small businesses trying to recover from losses, she said.
“Main Street is doing better as state and local restrictions are eased, but finding qualified labor is a critical issue for small businesses nationwide,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Small business owners are competing with the pandemic and increased unemployment benefits that are keeping some workers out of the labor force. However, owners remain determined to hire workers and grow their business.”
Virginia has been slowly reducing its restrictions, but a Wallethub report found that the commonwealth has the fourth most restrictions in the nation. This includes strict social distancing rules in restaurants, face mask mandates and no laws providing businesses with immunity from COVID-19 lawsuits.
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