Jobs Report: Arizona Passing Other States On Road To Recovery

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The National Federation of Independent Businesses’ June Job Report, a national barometer of the small-business economy, said Arizona is in a good place to beat its neighbors to full economic recovery.

The report revealed that 46% of small business owners reported job openings they could not fill in the current period. This marks a two-point decrease from May, but it is still above the 48-year average of 22%. Small business owners continue to struggle to find qualified workers for their open positions while raising compensation at a record high level.

Additionally, a net 39% of owners reported raising compensation, up five percentage points from May and a record high. A net 26% plan to raise compensation in the next three months.

Eighty-nine percent of the 592 respondents to the June survey reported finding few or no “qualified” applicants for their open positions that month.

NFIB chief economist Bill Dunkberg said that the inability of firms to hire the necessary number of employees has “restricted sales and output.”

“In June, we saw a record high percent of owners raising compensation to help attract needed employees and job creation plans also remain at record highs,” Dunkenberg said. “Owners are doing everything they can to get back to a full, productive staff.”

Chad Heinrich, Arizona state director for NFIB, said that the Grand Canyon state took beneficial measures to speed its economic recovery from the COVID-19 pandemic.

“Early legislative action this year to enact COVID-19 liability protection for businesses followed by recently adopted, historic tax reforms for income and property taxpayers will feed the flames of optimism and build confidence in business owners–leading to more investment, hiring and growth of small businesses in Arizona,” he said

Though small-business owners continue struggling to fill jobs, Heinrich said Arizona’s small businesses are in a better place than other states due to the pro-small-business Legislature.


This article was published on July 6, 2021 and is reproduced with permission from The Center Square.


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