Small business owners concerned about hiring as summer starts

Alison Schuch owns Fells Point Surf Co., with locations in Maryland and Delaware. As summer arrives, Schuch is down about ten workers at her two beach locations as a perfect storm of reasons drive a post-pandemic hiring crunch.

A lack of affordable summer housing, scant child care availability, inflation and the rebalancing of work and life in recent years have combined to make the applicant pool different from what it once was.

“It’s just been hard to kind of balance the expectations of the team and the needs of the business and the needs on both sides,” said Schuch, who owns Fells Point Surf Co. stores in Fells Point, Maryland and Dewey Beach, Delaware, as well as sister store Tangerine Goods in Bethany Beach, Delaware.

“And then also the expectations of the customers because, you know, having to close early because we don’t have enough people, customers want what they want. Convenience has become a huge important factor because you can go online and get anything you want,” she added.

With summer hiring season in full swing, small business owners like Schuch have lingering concerns about filling roles to meet consumer demand. Labor quality was the most important problem for nearly a quarter of National Federation of Independent Business members surveyed in May, according to the small business advocacy organization.

Labor quality has fluctuated between the number one and number two most important issue for NFIB members in recent months. The sectors where businesses are feeling the labor shortage most acutely include construction, transportation, and manufacturing, but retail and restaurant owners are also reporting challenges.

In May, 44% of owners reported job openings they couldn’t fill, while 38% said they were searching for skilled workers, the NFIB said. While owners have concerns about future business conditions and a potential recession, they’re still trying to hire and raise wages to entice workers.

Brendan McCluskey said he’s feeling the lack of talent available for hire in his construction business, Trident Builders, in Baltimore, Maryland. Finding skilled workers is among the biggest issues he said he currently has in a competitive landscape, and the shortage is driving wages higher.

“We’re on the precipice of having some real opportunities for growth, and [the concern is] am I going to be able to staff it?” McCluskey said. “I’m trying to get to the next level and almost like the next weight class, and which would allow us to stabilize our revenues, grow, invest in people, invest in systems, frankly, just make more money.”

Comprehensive immigration reform would also help fill the gap, according to some industry advocates like the National Restaurant Association. The group has urged Congress to take action to strengthen visa policies and the Deferred Action for Childhood Arrivals program, shorten waiting periods for asylum seekers and create the Essential Workers for…