Your Paycheck In 2027: Will You Get A Raise Or Get Laid Off? | Holly Wade

Small business health is currently defined by persistent inflation and a tight labor market, which continue to weigh on owner optimism. Holly Wade, Executive Director of Research at the National Federation of Independent Business, notes that while small businesses remain resilient, they face significant pressure to increase wages to retain talent, often absorbing these costs due to limited pricing power compared to larger competitors. Rising energy costs and tariffs further complicate operations, forcing owners to navigate complex supply chain issues and regulatory compliance. While AI adoption is growing as a tool to augment productivity and address labor shortages, implementation remains slow and primarily focused on administrative tasks. Ultimately, small business owners remain cautious, with many delaying capital investments and hiring decisions until economic conditions provide greater clarity.