Survey Reveals Alarming Trends in Small Business Employment and Economic Challenges

The latest findings from the Freedom Economy Index (FEI) survey shed light on the pressing economic challenges confronting small businesses and their employees. Nearly 40% of small business employers report that a significant portion of their workforce is holding two or even three jobs to make ends meet, a situation exacerbated by inflation and the diminishing purchasing power of wages. This trend is more prevalent among younger companies, indicating a generational divide in employment stability.

Andrew Crapuchettes, CEO of RedBalloon, points out the implications of this trend for the broader economy, suggesting that the apparent job creation in recent reports may mask the underlying issue of underemployment. The survey also reveals a stark contrast in employee mobility between newer and more established businesses, with the former experiencing higher rates of job switching among employees.

Another critical issue highlighted by the survey is the dissatisfaction among small businesses with their current locations, especially in California. A significant majority of businesses in the state are contemplating relocation due to various challenges, including economic and safety concerns. Crime rates have surged as a pressing issue, with over 70% of businesses reporting an increase, leading some to close or consider moving their operations.

As the nation looks forward to the State of the Union address, small business owners have voiced their priorities, with border security topping the list. This reflects the broader concerns of the business community regarding stability and security in the current economic environment. The FEI survey, conducted with a substantial sample of small business owners, underscores the urgent need for policies that address these multifaceted challenges to ensure a more stable and prosperous future for small businesses and their employees.