But some smaller companies may struggle to absorb higher labor costs. They often have more cash on hand, which allows them to absorb the hit from higher costs such as rising wages. But small companies still need to offer competitive wages to attract new workers. That means that higher labor costs eat more directly into profits. Umpqua UMPQ According to a recent survey by regional bank, small and middle market companies cited "higher labor costs" as among their most significant challenges and concerns.

Source: CNN August 01, 2021 12:45 UTC