The state of business in South Florida in 2021 is radically different from that of 2018. Fort Lauderdale Business Brokers agree that everything has changed. One change that is perhaps at the top of the list as a problem that needs to be addressed is the labor shortage that is affecting the economy as a whole, but particularly small and medium-sized businesses.
Small and medium-sized businesses
Florida Businesses of all sizes depend on their employees to run them. People can be difficult to manage and get them to do what you want them to, but what if you don’t have them? That’s what our culture is like. In a flash, it would appear that the majority of the population is independently wealthy.
Gig Economy
App-based self-employed contractor jobs in South Florida, such as Uber and Lyft, have in fact reduced the amount of labor available for brick-and-mortar jobs. For many, working for a corporation is a lot more tedious than going out on their own and driving people and or food to their homes. App-driven business models have taken millions out of the workforce by creating freedom for those who don’t wish to work for a “manager,” but is that really the problem?
Men and women between 25 and 40 years old in South Florida said they would rather work for themselves rather than for corporate America, according to a recent survey. It is interesting to note that 90% of respondents said they would not have the ability or ambition to start their own business.
Government-imposed increases in the minimum wage affected small to medium businesses in 2015. Papa John’s almost went bankrupt as a result. Meanwhile, the gig economy was taking off. As self-employed people became more and more dependent on government insurance, big companies like Papa Johns now had to hire more part-time staff or suffer the financial consequences of not only a huge salary jump but also increased hourly pay.
As a result of this, workers in small to medium businesses started taking gigs in place of traditional jobs for the chance to earn more money on their own terms. That was the perfect storm.
Evolving Is Essential
South Florida Businesses today are finding it difficult to find workers, especially in Fort Lauderdale as times will change, and we need to adapt.o work. Where does the line lie between working to help our local businesses and doing so simply to earn a paycheck? Today, if you go to restaurants, you will find the service to be terrible, and there are signs on the door indicating they don’t have enough staff to serve you.
Although it is important to evolve, we are in tough times with regard to labor, hard labor, and entry-level jobs.
Good news! Never in history have low-skilled workers been able to be hired at a higher salary than today.
