Small Businesses - Worker Shortages in 2025

This year, small and medium-sized businesses (SMBs) are finding themselves in a familiar but increasingly urgent situation, finding qualified workers.  This challenge is now taking on new dimensions as economic conditions shift and workforce expectations evolve.

Recent news shows that more than 40 percent of hiring managers are having trouble finding candidates who possess the right expertise for their available positions.  This is especially true in industries that require specialized skills, such as construction, healthcare, logistics, and technology.  The construction sector, for example, faces a particularly acute shortage, with the demand for new workers outpacing supply especially in our region of Southwest Florida.

This April, a third of small business owners reported that they had positions they simply could not fill, and nearly half said that the applicants they did receive often lacked the necessary qualifications.  This shortage of suitable candidates is not just a numbers game, it’s also about finding the right fit for the company’s culture and values.  More than 40 percent of hiring managers anticipate challenges in finding candidates who align with their organizational values, adding another layer of complexity to the hiring process.

Adding to these issues are the realities of salary expectations.  As the labor market tightens, candidates are demanding higher pay and better benefits. Nearly half of SMBs say that meeting these expectations is a significant obstacle, especially when they are forced to compete with larger companies that can offer more attractive compensation packages.  This dynamic is leading to increased turnover as existing employees are lured away by better offers.

Hiring delays are another major concern.  About 40 percent of SMBs report losing top candidates to competitors simply because their company hiring processes are too slow.  This not only prolongs the time it takes to fill critical roles but also increases the risk of losing valuable talent to more agile employers.

Despite these challenges, there is a sense of optimism among small business owners.  Nearly seventy percent express confidence in their financial outlook for the year, and almost half expect to create new jobs. However, almost ninety percent of those actively hiring say that recruiting qualified employees remains difficult, and thirty percent say labor shortages are a primary concern.

As 2025 unfolds, it’s clear that the struggle to find workers is shaping the trajectory of small and medium-sized businesses across the country.  The solutions will require creativity, flexibility, and a renewed focus on what makes each business unique—not just as an employer, but as a place where people want to build their careers.