Small business owners in New York are struggling to fill open positions as the state’s labor participation rate falls behind neighboring states and larger states like California and Florida, according to a survey from the National Federation of Independent Business (NFIB). The survey, released last week, found that 47% of small business owners in New York reported job openings that have not been filled.
The NFIB State Director Ashley Ranslow stated, “This report underscores the need for solutions that support our local job creators – not burdensome mandates that make it harder for small businesses to keep their doors open. Amid escalating prices, a low workforce participation rate, and recession fears, small business owners are asking lawmakers to do no harm and to work together on a pro-growth agenda that would promote greater economic opportunity for New York.”
The low labor participation rate in New York has been a concern for the state as it continues to struggle to cover all of the jobs lost in the wake of the initial weeks of the COVID-19 pandemic three years ago. Hard-hit sectors across the country like tourism and hospitality had a significant impact in New York City, while population loss has also accelerated in the last three years.
The U.S. Bureau of Labor Statistics has reported that New York’s labor participation rate has been behind neighboring states like New Jersey and Massachusetts as well as larger states like California and Florida. The unemployment rate in New York in January ticked upward to 4.2%, while labor participation increased slightly from 60.4% to 60.5%, according to the state Department of Labor.
The survey results highlight the need for solutions that support local job creators in the state. Small business owners are urging lawmakers to work together on a pro-growth agenda that would promote greater economic opportunity for New York. As the state continues to recover from the pandemic’s economic impact, policymakers must prioritize efforts to increase the labor participation rate to ensure businesses have access to a larger pool of skilled workers.
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