What the Jobs Report and Inflation Means for SMBs

The new jobs report just came out, and while the numbers are looking up, concerns are mounting over the ripple effect over supply chain issues, and what can be done about it.

According to the US Bureau of Labor and Statistics reported 678,000 new jobs in the month of February. This is well above Wall Street expectations. It also shows the unemployment rate down to 3.8%, slightly lower than January. This is significant because it is now below 4%, and it is getting closer to the pre-pandemic low of 3.5%.

There was concern that the Omicron variant of COIVD-19 would have a major effect on the jobs market this winter, but so far we have seen steady improvement.

This surge in jobs will also help businesses, as the Federal Reserve is sticking to its plan to raise interest rates this month, helping ease inflation that is growing across the country. This will be the first rise in interest rates since before the pandemic.

Inflation worries.

While the job report is good, businesses are still dealing with supply chain issues. The push for goods which started in the summer of 2021, is now causing another problem as we get further into 2022.

Inflation is on the rise, with no sign of slowing down. We have seen the prices of nearly everything go up in the past few months, and there is a direct connection to the amount of goods coming in. With less products and parts, their price will go up.

According to Business Insider, this is likely to continue through 2022. Too many companies are looking for the same products that aren’t available. With businesses paying more for things, it will get passed on to the consumer.

They say the good news is the US is likely past the peak of the supply chain crisis, but the recovery will not be quick.

Finding Solutions.

Small businesses especially need to stay on top of the changing market. Make sure you are tracking the goods you are getting in, and how long they take.

Utilize the technology available to you. Business texting has gained a lot of momentum during the pandemic, and more businesses are starting to adopt these platforms to help streamline their workflow and improve communication, especially with supply chain issues.

About Kenect:

Kenect helps businesses connect with their customers. We build simple texting tools that are elegant and easy-to-use. Thousands of companies across North America use our platform to text their customers, generate online reviews, gather leads from their websites, video chat, and collect payments.

Based in the Silicon Slopes of Utah, our team is committed helping businesses improve their customer experience and customer communication.

To learn more about Kenect, visit kenect.com or text us at (888) 972-7422.

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