LGBTQ small business owners are struggling to get back to business before the pandemic.
Just over 20% are struggling to find employees, according to a new CNBC + Acorns and NGLCC survey on the financial health of small business owners. The lack of workers could end up hampering their efforts.
Among those facing a hiring crisis, more than 42% blame unemployment benefits.
LGBTQ business people are not the only ones who are unable to attract employees. In fact, overall, the number of all struggling small business owners is higher. A record 48% reported vacancies in May, according to the National Federation of Independent Businesses.
There has been an ongoing debate as to whether government benefits, like the extra $ 300 for unemployment, keep people from working. The most recent jobs report for May reflects this, according to some economists.
It comes as 25 states are removing enhanced federal unemployment benefits before September 6, the official expiration date. These states hope to encourage workers to re-enter the labor market.
On the other hand, those who support maintaining the $ 300 advantage argue that this move will do more harm than good.
“This will cut aid to nearly four million affected workers, despite the lack of convincing evidence that unemployment benefits cause problems in the labor market,” said Heidi Shierholz, senior economist and policy director at the ‘Institute for Economic Policy, in a recent York Times Editorial.
“Instead, we have considerable evidence that this is useful.”
Small business owners recognized that there could be more at stake than just unemployment. Workers have found jobs in other industries and parents still struggle with child care issues.
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Yet 78.6% of LGBTQ small business owners surveyed believe more people will look for work in September when benefits run out.
They are also optimistic about the future of their businesses: 78.1% said they expected a full recovery in 2022. Almost 22% said they were very confident about the economic recovery to come and close. 43% were somewhat confident.
– CNBC’s Greg Iacurci contributed to this report.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Tassels.