Everything Small Businesses Are Saying Points To Higher Wages

New survey data from the National Federation of Independent Business (NFIB) point to rising wages for American Workers.

25% per cent of firms reported increases to compensation in the past three months, up from November’s 21% per cent. This number has also been trending upwards since the financial crisis.

17% expect to increase compensation in the next six months, up from 13% in November.

And while sales are still one of the bigger concerns for small business, it’s seen a major drop as the “single most important problem.” The change towards labour quality becoming the most important problem for more employers suggests that economic concerns are shifting from weak demand to tight supply.

And although there was a slight decrease in respondents who reported “few or no qualified applicants” for the positions they were trying to fill (43% in December, down from November’s 45%), good labour in America is still in short supply. T
his number has been continuously trending higher since 2009.

And all of this points to higher wages for America’s workers.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.