UKG: Tight Labor Market Challenging for Smaller Businesses

Summary:

Businesses with 100 or fewer employees experienced a decline in workforce activity for the 12th time in 13 months, according to the July 2023 Workforce Activity Report published by UKG. Smaller businesses will likely continue to struggle amid the tight labor market, which may create additional wage inflation as businesses of all sizes and across all industries compete to hire and grow.

UKG will discuss current and future potential trends shaping the frontline economy on Tuesday, August 1, at 10:00 a.m. ET, including:

• A nationwide decline in shift work (-0.7%) in July, following back-to-back months of growth;
• Declines across most sectors, including manufacturing (-0.9%), retail and hospitality (-1.1%), and services and distribution (-0.7%);
• The importance of healthcare’s fourth straight month of growth (0.2%);
• How the Federal Reserve’s recent decision to again increase interest rates will impact the labor market; and
• Why economic conditions remain ideal to potentially prompt additional wage inflation over the next 6-12 months.

Register to attend.

The UKG Workforce Activity Report is a high-frequency index analyzing shift work trends across 4.2 million people at 35,000 U.S. businesses to understand the economy. Reports are published and briefings are held each Tuesday prior to the publication of the BLS Employment Situation Report. Upcoming publication schedule:

• August 2023 Workforce Activity Report: August 29, 2023
• September 2023 Workforce Activity Report: October 3, 2023
• October 2023 Workforce Activity Report: October 31, 2023