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Despite concerns about the economy, more than half of Central Massachusetts small businesses planned to increase hiring in 2022, according to a recent survey by Leominster-based Fidelity Bank.
Fidelity Bank’s annual economic outlook survey of consumers and businesses found that 55 percent of business respondents said they would increase investment in their workforce this year, the bank said in a statement. The survey, which asked about the economy over the next 12 months, included responses from more than 200 businesses and more than 500 consumers.
Availability of skilled labor, inflation, and cost concerns related both to overall living expenses and to fuel and energy were identified as top challenges for businesses. The survey found that 39 percent of businesses were confident about the economy, compared to 57 percent in 2021.
With businesses focused on the availability of skilled labor and new hire recruitment and retention, the survey found that top strategies that businesses might use to address staffing challenges included increasing pay, accommodating flexible work schedules and increasing training.
Survey respondents are still concerned about the effects of COVID-19, but 35 percent of businesses said that changes made in response to the pandemic would continue indefinitely, and 30 percent said they would continue either for all of 2022 or for the next one to two years. The bank said that many businesses saw these changes as positively impacting business performance
Businesses also want to leverage capital investment by purchasing new equipment, hiring new workers and investing in training over the next year, the survey found.
As of 2021, consumers’ top priority was having more control over their finances, Fidelity Bank said, with a focus on setting and sticking to a budget and paying off debt while building a healthy nest egg.
Consumer households are uneasy about the current economic environment and concerns over costs are leading consumers to decrease their spending and place a higher priority on saving, the bank said. Despite inflation concerns, spending habits remained at 2021 levels, the bank said, with price and value, convenience, and safety protocols listed as top issues associated with shopping habits.
“We believe it’s important to understand the concerns of our businesses and consumers so we can respond effectively as a community,” Ed Manzi, Jr., chairman and CEO of Fidelity Bank, said in the statement.
