The Freedom Economy Index survey conducted by PublicSquare and RedBalloon.work reveals significant workforce and business challenges affecting small employers nationwide. According to the survey conducted from February 6 to 9, 2024, with 840 respondents from over 80,000 small business owners, nearly four in ten small business employers report that 30% or more of their workforce holds two or even three jobs to survive.
RedBalloon CEO Andrew Crapuchettes noted that inflation has undercut wages and spending power, forcing many people to work multiple part-time jobs. This trend is particularly pronounced among younger companies, while more established businesses report fewer instances of employees holding multiple jobs. The survey data helps explain strong job creation numbers in government reports, as individuals take on multiple positions to maintain financial stability.
The survey also documents ongoing workforce mobility, with nearly 40% of employers reporting frequent job switching among employees, while only 11% said employee tenure had stabilized. This continued movement suggests persistent dissatisfaction with current employment conditions and compensation levels.
Business relocation has emerged as another significant trend, particularly in California where only 13% of small businesses expressed satisfaction with their current location. A substantial 67% are either planning a move, considering relocation, or want to move but cannot afford the costs. As PublicSquare CEO Michael Seifert observed, many businesses feel trapped in unfavorable locations despite their desire to relocate.
Crime concerns have escalated significantly, with over 70% of small businesses reporting increased crime rates. Specifically, 32.2% reported significant increases and 38.2% reported slight increases. In response, some businesses have closed locations (1.4%), moved (3.6%), or considered moving (22.4%), indicating that safety concerns are directly affecting business operations and location decisions.
Looking toward policy priorities, the survey found that 46.1% of small business owners believe US border security should be President Biden's top priority in upcoming addresses, followed by government spending and debt (13%), election and government integrity (10.2%), inflation (2.8%), and foreign policy (1.7%). These priorities reflect the operational challenges businesses face in their daily operations.
For HR vendors serving the small business market, these findings indicate several developing needs. Workforce stability solutions, compensation strategies that address inflation pressures, relocation support services, and security consulting may see increased demand as businesses navigate these challenges. The survey results suggest that traditional HR approaches may need adaptation to address the realities of multiple job-holding employees and businesses considering geographic relocation.
The complete survey methodology and additional findings are available at https://www.redballoon.work and https://www.publicsquare.com. The Freedom Economy Index provides quarterly insights into small business sentiment and challenges, offering valuable data for vendors developing human resources and talent management solutions for this critical market segment.
