Melissa Pavlicek, Hawaii state director for the National Federation of Independent Business (NFIB), commented on the anticipated vote on Senate Bill 2018 by the Senate Committee on Labor, Culture, and the Arts. The committee is scheduled to meet at 3 p.m. today.
“We doubt that SB 2018 will be de-railed despite weekly news reports of so many long-time local businesses shuttering their doors,” Pavlicek stated. “Increasing the minimum wage is too popular of an issue, even though the after-effects could exacerbate problems for small-business solvency and growth. Right now, small-business owners are offering record highs in compensation and still having a difficult time finding employees. This is the ideal time to work to foster small-business growth rather than to increase the cost of doing business here.”
According to NFIB’s latest Jobs Report, a record-high number of small business owners are raising compensation to retain and attract new employees. Seasonally adjusted data shows that a net 48% reported raising compensation, marking a 48-year record high reading. Additionally, a net 32% plan to raise compensation in the next three months.
The NFIB’s recent COVID-19 survey indicates that labor shortages remain a significant challenge for many small employers. Twenty-three percent report experiencing a significant staffing shortage, while another 20% face moderate shortages. Furthermore, one-quarter reported mild staffing shortages. To address these issues beyond normal hiring practices, 83% have increased wages.
For over 77 years, NFIB has advocated for America’s small and independent business owners across Washington D.C., and all state capitals as a nonprofit and nonpartisan association since its founding in 1943.
