The mighty power of small business is alive and well in 2024. At the end of last year, the Wall Street Journal published an article saying the smallest U.S. employers have the highest share of job openings. With more than one in five available roles originating from a small business, this could signal a shift in the labor market toward small businesses, according to the article.
Companies with one to nine employees accounted for almost one-quarter of job openings in September 2023. This is almost a 20% increase from September 2022. In contrast, larger companies have dropped over the same period according to analysis of U.S. Department of Labor data from Julia Pollak, chief economist, ZipRecruiter.
Small businesses come in many forms from solopreneurs and mom-and-pop establishments to franchises and family businesses. These business owners share a common story of reinvention. Some turning a side hustle into a full-time gig while others have reinvented their career path after a layoff or to combat the frustration of today’s increasingly lengthy hiring process.
With applications for employee identification numbers to launch a new business at nearly 1.5 million through October of 2023, a 7.5% increase from the same period in 2022, these numbers are especially good news. Small businesses hit hard during the pandemic are now coming back into their own and this hiring boost will be good for small business owners and job seekers alike.
Small Business Trends
With forward momentum in mind, The U.S. Small Business Administration published its list of trends that will shape small businesses in 2024.
Artificial Intelligence (A.I.) – 91% of small businesses report A.I. has made their business more successful, using it for a variety of business and marketing purposes.
Human Element – Soft skills will be increasingly important to balance the “coldness” of A.I. The need for emotional intelligence will always trump the cut-and-dried approach of technology.
Customer Experience – With customers and consumers staying wary of the encroachment of technology, it will be important employees have great people skills that place the human element first.
Sustainability – Customers and consumers increasingly look to spend their money with businesses that share their personal values. This also means a greater emphasis on transparency.
Cybersecurity – With more information entrusted to the cloud, customers must have the assurance their information is always secure. Companies need to have a solid cybersecurity plan in place to protect themselves and their customers.
Small Business Proud
Staffing Kansas City is proud to be certified as a women-owned business. Our hands-on owners and experienced recruiters help jobseekers and small- to medium-sized businesses across the Kansas City metro. We specialize in the placement of office support professionals in the areas of accounting, sales, marketing, administration, reception, clerical and customer service.