Worker shortage means small businesses are hiking prices at fastest pace since 1974

Researchers canvassing small businesses found that pay and price hikes are happening in tandem across economic sectors as the worker shortage persists into 2022.

According to a new survey from the National Federation of Independent Business, the net percentage of owners raising selling prices hit 61 percent — the highest since 1974, when inflation was rampant. A net 50 percent of owners are raising compensation, a 48-year high.

“We haven’t seen anything like this in our survey since the mid-1970s, and most small-business owners have never experienced anything like this,” said Holly Wade, executive director of the NFIB Research Center. “For most small-business owners, this is a whole new environment they have to navigate — and it’s proving to be an incredible challenge,” she said.

A survey published last week by Alignable, an online platform for small businesses, found that 60 percent of small businesses are struggling with labor shortages — and some sectors report even higher percentages. For example, two-thirds of restaurants and three-quarters of manufacturers report being unable to find workers to fill open positions, and a whopping 92 percent of assisted and senior living facilities are struggling to find employees.