According to a recently published quarterly economic survey Business Leaders for Michigan, a press release said, concerns about labor shortages and inflation are severely straining the minds of Michigan business leaders.
Labor shortages are felt in all categories of jobs, including production, office and front-line jobs, and 85% of respondents expect that in the next six to 12 months will have problems filling vacancies, not to mention the economic impact of Ukrainian- the Russian conflict.
“We need to take significant steps to address the labor shortage in our state,” Jeff Donafria, president and CEO of Michigan Business Leaders, said in a press release. “Our recent comparative study shows that the level of participation in the Michigan workforce ranks 41st in the country, and companies are feeling the effects. The historic state budget surplus gives Michigan a unique chance to increase the number of people with diplomas and credentials and eliminate barriers to work, helping to close these talent gaps. ”
About 49% of respondents expect inflation to remain at current levels and 34% expect it to increase in the next six to 12 months, while 16% say inflation is likely to decline. Inflation is most affected by materials and wages. Randy Barris, vice president of marketing and communications, Michigan business leaders, told the Michigan Chronicle that international issues related to the Russian-Ukrainian conflict are being felt much closer.
“The first thing Michigan residents will feel will be at the gas station. Higher gas prices could lead to further inflation, as it will affect prices in many other areas, such as groceries, ”Beris said.
Despite the problems, 70% of executives say their business is doing better than before the pandemic. In addition, 55% of executives say Michigan’s economy will remain the same, 22% say it will improve, and 24% say it will deteriorate in the next six to 12 months; 43% say the U.S. economy will stay the same, 28% say it will improve, and 28% expect it to get worse.
Other significant findings include:
94% of executives expect employment and investment in Michigan to remain the same or grow over the next 6-12 months
75% expect their company’s share of real estate to remain the same, while 4% expect it to increase and 21% expect it to decline over the next 6-12 months
Michigan business leaders conducted an internal survey of members on February 1-15. Find out more at www.businessleadersformichigan.com.