The struggle to fill job openings continues for mom-and-pop enterprises and other small businesses across the country, according to a report issued Thursday by the National Federation of Independent Business (NFIB).
“The labor shortage remains a challenging problem for small business owners,” NFIB Chief Economist Bill Dunkelberg said of the group’s Jobs Report for October. “Because of staffing shortages, small business owners are less able to take full advantage of current sales opportunities and continue to make business adjustments to compensate,”
The Jobs Report is a monthly, national snapshot of the small-business-owning membership of NFIB in 9 industries — agriculture, construction, finance, manufacturing, professional, retail, services, transportation, and wholesale.
The October 2022 report released Nov. 3 shows that:
23 percent of owners report labor quality as their top business problem, second only to inflation;
61 percent of owners reported hiring—or trying to hire—in October;
Of those hiring or trying to hire, 90 percent of owners reported few or no qualified applicants for the open positions;
40 percent of owners have openings for skilled workers while 22 percent are seeking unskilled labor;
Transportation (68 percent) and Construction (63 percent) had the most difficulty in October filling job openings.
There are several programs available to Arizona small businesses to assist with hiring issues. One is the Arizona Small Business Development Center Network funded in part by the U.S. Small Business Administration. There are 10 SBDC Centers in Arizona served through the local community college districts.
Another is Arizona@Work sponsored by the Arizona Commerce Authority and Arizona Department of Economic Security.
Anyone who bought Halloween candy likely noticed the higher prices and fewer sales. Yet it appears to be just a prelude of things to come heading into Thanksgiving.
President Biden and House Democrats’ reckless spending is haunting American families this Halloween.
🍬Halloween candy prices are up 13%. 🎃Pumpkin prices are up 7%.@HouseGOP is committed to ending this cost-of-living crisis by reining in Democrats’ failed agenda.
Avian flu outbreaks across the country have led to the slaughter of more than 7 million turkeys, resulting in a shortage that has prompted souring supply and demand pricing (up 70 percent per pound from last year) that has been further worsened by inflation.
Turkeys are not the only Thanksgiving staple subject to significantly higher prices this year.
Baking pumpkins are also much more expensive, up 24 percent from last year’s holiday season. And anyone who buys butter or margarine—a must-have for those potatoes and rolls—knows the shortage of sunflower oil (due to the war in Ukraine) and canola oil (due to droughts in Canada) have seen prices creep up all summer along with milk costs.
Add all of that to the recent inflation report which shows most other foods have gone up 15 to 20 percent, and it equals a traditional American Thanksgiving dinner that is going to be costly this year.
Meanwhile, grocery stores and restaurants which typically sell take-home Thanksgiving dinner packages are advising customers to order early, as quantities are limited.
And those trying to escape the higher grocery prices—and cooking time—by dining out won’t see much relief, according to the National Restaurant Association. Restaurants are seeing the same price squeezes, which when added to higher labor costs will translate to higher prices on the menu.
The higher prices for Thanksgiving staples is also expected to squeeze nonprofits across Arizona who count on food donations to provide thousands of free meals to the homeless and low-income families.
Six U.S.-based global banking firms which participate in Environmental, Social, and Governance (ESG) practices that seek to restrict investment in companies engaged in fossil fuel-related activities are under investigation by 19 states, it was announced this week.
Arizona Attorney General Mark Brnovich and 18 other state attorneys general served civil investigative demands against Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo related to each company’s involvement with the United Nations’ Net-Zero Banking Alliance (NZBA). The demands act as legally enforceable subpoenas.
NZBA-member banks have promised to set emissions reduction targets in their lending and investment portfolios to reach net zero by 2050. It is one example of ESG practices which have come under scrutiny for prioritizing policy initiatives ahead of sound investment strategies.
In the case of the NZBA initiative, it could lead to some farmers, oil leasing companies, suppliers, and other businesses connected with fossil-fuel production being unable to get loans or find investors from the six banking firms and their affiliates, according to Brnovich’s office.
“American banks should never put political agendas ahead of the secure retirement of their clients,” Brnovich said in announcing Arizona’s involvement in the investigation. “These financial institutions are entrusted with protecting a different type of green.”
Arizona, Kentucky, Missouri, and Texas are the leadership states on the NZBA investigation. Some of the 10 interrogatories included in the civil investigative demands served on the six banking firms seek information on:
All divisions, groups, offices, or business segments whose responsibilities relate or used to relate to membership in the Net-Zero Banking Alliance or to ESG Integration Practices, and identify all executives, directors, officers, managers, supervisors, or other leaders of each division, group, office, or business segment;
Each Global Climate Initiative with which the firm is affiliated and an explanation of the reasons for choosing to join such Global Climate Initiatives;
Who made the decision to join each Initiative, including any involvement or input from the Board of Directors, investors, or Covered Companies;
All involvement in each Global Climate Initiative, including dates as well as “any promises, pledges, or other commitments” made by each company;
A detailed description of the company’s involvement with the Net-Zero Banking Alliance, including identities of all individuals who have represented the company within the NZBA.
In August, Brnovich joined Arizona in a 21-state coalition in commenting on a U.S. Securities and Exchange Commission (SEC) proposed rule that would add requirements for investment funds which consider ESG factors in their investment decisions. The proposed SEC rule was seen by the states as an attempt to transform the agency from a “federal regulator of securities into a regulator of social ills.”
The same month, Arizona was one of 19 states which sent a letter that put investment firm BlackRock on notice that its actions on a variety of governance objectives may violate multiple state laws by using “the hard-earned money of our states’ citizens to circumvent the best possible return on investment.”
BlackRock, which oversees some pension funds in those states, has been engaging in a “quixotic climate agenda” that appeared to be sacrificing pensioners’ retirements instead of focusing solely on financial return.
“Fiduciary duty is not lip service. BlackRock has an obligation to act in the sole financial interest of its clients,” the Aug. 4 letter stated. “Given our responsibilities to the citizens of our states, we must seek clarification on BlackRock’s actions that appear to have been motivated by interests other than maximizing financial return.”
And in November 2021, Brnovich announced a review of Climate Action 100+ and its investment company members which manage trillions of dollars in assets. This was prompted by concerns that the firms will put their ESG goals ahead of well-established fiduciary duties.
This could include inappropriate pressure and anticompetitive conduct against the members’ own clients and customers who do not comply with the ESG practices of Climate Action 100+, according to the attorney general’s office.
A 26-page report detailing multiple concerns with last year’s environmental review of Resolution Copper’s plans to mine in and around the Tonto National Forest means the company won’t be securing its required permits anytime soon.
Water was the subject of concern in the report prepared for the Bureau of Land Management (BLM) by two hydrogeologists and a hydrologist who reviewed the Final Environmental Impact Statement (FEIS) issued in January 2021 as part of Resolution Copper’s permitting efforts under the National Environmental Policy Act.
Resolution Copper began nearly 20 years ago to develop a plan for underground mining roughly 60 miles east of Phoenix, near the town of Superior. It forecasts up to 3,700 direct and indirect jobs over the life of the project, with a payroll of $270 million at full production.
Supporters point to the benefits of improving U.S. domestic copper supply, which significantly lags behind Chile, Peru, and China. Resolution Copper could potentially produce as much as 40 billion pounds of copper over 40 years, with the ability to provide nearly 25 percent of America’s copper demand, the company says.
Most of the land around the mining site is government owned, although some private landowners in the area have wells which could be impacted by the mining, according to the 2021 FEIS report. Those potential private well impacts were not sufficiently addressed in the FEIS, according to the three BLM reviewers.
The water impact issue also raises the question of whether the concerns of private landowners and state water officials are trumped by the federal General Mining Law of 1872, which has long been viewed in Arizona as overriding any local and state interests.
Copper was first discovered in the greater Superior area in 1863 with the first known mine production starting in 1887. But by 1995 copper production ended in the area.
It was also in the mid-1990s that the Resolution Copper deposit was discovered. It would take several years before formal exploration and studies were undertaken.
Then in 2014 Resolution Copper began the process to obtain the necessary permits. That same year it obtained Congressional approval for a land swap which would give the company 2,422 acres of federally owned land in the Tonto National Forest within its project site in exchange for more than 5,300 acres of land Resolution Copper owned across Arizona.
But it would take until January 2021 for the land swap to receive regulatory approval. Then it took until June of this year for the company to prevail in a legal challenge when the U.S. Court of Appeals for the Ninth Circuit rejected arguments on behalf of various Native American tribal members that the land swap would allow Resolution Copper to interfere with being able to worship at various sacred sites.
The Court also rebuffed legal claims that an 1852 treaty prohibited the mining activity, thus clearing the way for the land swap.
Resolution Copper says it has modified its project boundaries over the years after consultation with federal regulators and 11 Native American Tribes, including the San Carlos Apache. As a result, the company announced it “will forego portions of copper-bearing ore to minimize subsidence impacts” to important areas within the 4,600-acre Oak Flat.
The maximum expected impact area will be less than 1,800 acres at the end of the life of the mine, according to the company.
Resolution Copper will also “forego private ownership and mineral title” to the Apache Leap area at Oak Flat by permanently protecting it as a Special Management Area managed by the U.S. Forest Service. And the company has announced there will be “no physical impact” to another sacred site at Devil’s Canyon.
In the meantime, the U.S. Forest Service approved the company’s plan of operations and an initial environmental assessment in 2016. The agency then published a Draft Environmental Impact Statement in 2019 following dozens of public meetings and consultations, and countless hours spent by both company and government employees trying to satisfy myriad requirements.
Additional review and comments were taken into consideration for the Final Environmental Impact Statement released in January 2021. The FEIS identified alternatives to some of Resolution Copper’s plans and identifies suggested mitigation measures—required and voluntary—to “minimize, reduce, or offset impacts” from the proposed project.
It is that FEIS which has been subject since then to further public and federal reviews, including the one recently conducted by the water experts for BLM.
No deadline has been announced for releasing a new FEIS that would incorporate updated information based on the reviews.
Arizona has the highest inflation rate in the country — making this state the number one victim of President Joe Biden’s inflation crisis.
The Phoenix-Mesa-Scottsdale area suffers from 13 percent inflation, according to the latest Federal Bureau of Labor Statistics data released Tuesday. Nationwide inflation rate sits just over 8 percent.
According to recent polling, the inflation and border crises are of equal importance to Arizona voters.
Top issue for Arizona voters? Border security now tied with inflation. Both winning issues for Rs, but also sign that the worst of the economic malaise behind Biden. pic.twitter.com/KfBz0hHI38
Arizona Free Enterprise Club (AZFEC) President Scot Mussi told AZ Free News that the Biden administration has only worsened the economic woes of Arizonans. Mussi warned that consumers would continue to cut back on major purchases, and business owners would freeze expansions and hiring. He also pointed out that any reductions in inflation weren’t due to the Biden administration’s actions, but instead consumers cutting back.
“It’s pretty clear that the decision makers in Washington want to make this situation worse,” said Mussi. “The recession will continue to linger on until policy makers get serious about runaway spending.”
While Arizonans and the rest of America were taking in the federal government’s latest inflation report on Tuesday, President Joe Biden was celebrating the controversial Inflation Reduction Act (IRA).
Tune in as I deliver remarks celebrating the Inflation Reduction Act and how it demonstrates government working for the American people. https://t.co/ZDwRFPcDdT
Biden didn’t address how the latest inflation data reflected historic highs. Rather, the president asserted that the effects of inflation were improving, and that the state of the economy should come as good news for Americans.
Today’s data show progress in fighting inflation. This month, prices overall were essentially flat, gas prices were down, and wages were up – that's good news for American families.
My plan is showing we can lower costs, create jobs, and bring manufacturing back to America.
However, not all within Biden’s party agreed that the IRA and other recent actions by the president are wins. In an interview this week, Senator Mark Kelly (D-AZ) refused to affirm that Biden is doing a good job as president. Congressman Andy Biggs (R-AZ-05) assessed that Kelly treaded carefully due to Biden’s unpopularity among voters.
.@RepAndyBiggsAZ: Mark Kelly "knows that Biden is on the ballot this November and Biden is on the ballot and in Arizona, Biden is incredibly unpopular." @RobFinnertyUSA
Mick McGuire, former Arizona National Guard general and failed senate candidate, told “The Conservative Circus” on Tuesday that Kelly was just as guilty as Biden for failing Arizonans with worsening inflation.
Mussi asserted that the IRA wasn’t anything to celebrate, calling it the “Inflation Destruction Act.” He explained that the IRA wouldn’t reduce inflation. Mussi noted that the government hasn’t even distributed all of the stimulus funds from the American Rescue Plan.
“We haven’t even finished rolling out the Biden COVID recovery act: the $1.9 trillion spending palooza. There’s no discipline right now, and there’s really no end in sight,” said Mussi. “Right now, we’ve hit what would be the definition of a recession. Even if you wanted to use the Biden administration’s viewpoint, at best you could say we’re in a bad state of stagflation. There’s absolutely no growth.”
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
The city factors minimum wage based on cost of living in addition to inflation. In 2016, Flagstaff voters approved Proposition 414, a measure raising the minimum wage to $15 an hour last year and ensuring annual adjustments for inflation and cost of living every year thereafter. The city’s minimum wage must be at least $2 above the state’s minimum wage.
Prop 414 also ensures that hourly tipped minimum wage will be the same as hourly minimum wage by 2026.
It’s anticipated that the state will increase minimum wage to $13.85 an hour, just over a $1 increase from the current $12.80 minimum wage.
Despite criticism that the minimum wage would exacerbate unemployment, Deasy shared in March that unemployment rates have halved since 2016.
Flagstaff’s Minimum wage and Unemployment rate
Dec. 2016: $8.05 / 6.4% Dec. 2021: $15 / 3.7%
When exactly was min wage going to kill jobs again?
— Flagstaff Mayor Paul Deasy (@MayorDeasy) March 8, 2022
Those unemployment rates may reflect the hiring and growth of big box and chain stores, in turn masking the suffering of small businesses.
Several small businesses were vocal about experiencing the brunt of Flagstaff’s minimum wage increases. About a month before the pandemic occurred, small business owners reported that they’d resorted to reducing their number of employees and their hours of operation.
The Flagstaff City Council has also considered a minimum wage increase for its city employees. They haven’t voted on an increase yet.
Pending Council’s vote, Flagstaff’s minimum wage for city employees will be $16.60/hr starting in July.
Come work with us cool kids 😊
— Flagstaff Mayor Paul Deasy (@MayorDeasy) April 22, 2022
Deasy has petitioned the council to increase city employees’ minimum wage, initially asking for $17 an hour but settling for slightly less, $16.60 an hour.
I asked staff to assess the financial impact of a $17 minimum wage for City of Flagstaff employees at today’s budget retreat.
