MADISON—The new Wisconsin Employer Survey says that 88% of businesses are struggling to hire, and the workforce shortage is leading to even higher wage increases than last year.
In fact, more than eight in 10 companies plan to raise wages by 3% or more in 2022, and more than one-third of businesses plan to raise wages by more than 4%. That’s a jump from roughly one-quarter of businesses in the Summer 2021 survey—and far greater than the 9% who responded the same one year ago.
Wisconsin Manufacturers & Commerce — the combined state chamber and manufacturers’ association — conducted the survey over the last three weeks of January, covering a variety of topics.
“Wages are rising much faster than they have in recent memory,” said WMC President & CEO Kurt R. Bauer. “Wisconsin does not have enough people to fill the jobs we have available, and that creates an aggressive competition for talent. We are seeing wages rise at a faster rate, sign-on bonuses, work flexibility and many other strategies from companies to attract and retain talent.”
The survey also showed business confidence has dipped over the last six months.Â
Fifty-three percent of businesses rate the state economy as strong, which is five points lower than the Summer 2021 survey. Looking to the national economy, 39% of employers rated it as strong — a drop from 53% six months ago.
When asked how the Wisconsin economy will perform over the next six months, 65% expect good or moderate growth and one-third say it will remain flat. In the summer 2021 survey, only 13% said the economy would remain flat and more than eight in 10 businesses expected good or moderate growth.
In another sign of waning confidence, most Wisconsin businesses (68%) still think they will hire employees in the next six months, but that’s a drop from 79% this past summer.
The Wisconsin Employer Survey is conducted twice a year by WMC. For the winter 2022 edition, WMC surveyed 265 employers that make up a representative sample of its membership. Businesses of all sizes, industries and geographic locations in Wisconsin participated.
The survey will be released in three separate reports on topics including: the economy; supply chain and inflation; and state and federal public policies.
Click here to read the Wisconsin Employer Survey – Winter 2022 report on the economy.
