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Small Business Center

Surge in Hiring by Small Business Complicates Fed’s Inflation Fight

February 1, 2023

A surge in small business hiring could complicate the Federal Reserve’s efforts to curb inflation, according to an article in The Wall Street Journal. The story states that small business owners, who are driving the labor market, have added a net 3.7 million jobs since February 2020. Large companies have reduced their headcounts by 800,000 since then. To attract employees, small business owners are raising pay and offering bigger bonuses, which contrasts with the Fed’s desire to cool the economy and bring wages more in line with historical trends.

Click here to read more about how the effects of this trend are bumping up against the priorities of the Federal Reserve and to hear about likely resolutions.

By Rebecca Meiser

Contributor, Commerce + Communities Today and Small Business Center

Small Business Center

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