JEFFERSON CITY – NFIB’s August jobs report found that 32 percent (seasonally adjusted) of small business owners reported job openings they could not fill in August, down one point from July. The last time unfilled job openings fell below 32 percent was in July 2020. Twenty-eight percent have openings for skilled workers (down 1 point), and 13% have openings for unskilled labor (up 1 point).
“While the economy appears to be doing well, small businesses are scaling back on job openings,” said Chief Economist Bill Dunkelberg. “Small business owners with job openings are still looking for qualified applicants, many citing labor quality as their single most important problem.”
“Although there are fewer open positions, small businesses are still trying to hire,” NFIB State Director Brad Jones said. “Finding applicants with the right experience and skills remains a challenge.”
In August, 21 percent of small business owners cited labor quality as their single most important problem, unchanged from July. Labor costs reported as the single most important problem for business owners fell one point from July to 8 percent.
Overall, 53 percent of small business owners reported hiring or trying to hire in August, down four points from July. Forty-three percent (81 percent of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill, down five points. Twenty-six percent of owners reported few qualified applicants for their open positions and 17 percent reported none.
Twenty-eight percent have openings for skilled workers (down 1 point) and 13 percent have openings for unskilled labor (up one point).
Job openings were the highest in the construction, manufacturing, and transportation industries, and the lowest in the wholesale and finance industries.
A seasonally adjusted net 15 percent of owners plan to create new jobs in the next three months, up one point from July and the third consecutive monthly increase.
Seasonally adjusted, a net 29 percent of small business owners reported raising compensation in August, up two points from July. A net 20 percent (seasonally adjusted) plan to raise compensation in the next three months, up three points from July. Labor costs reported as the single most important problem for business owners decreased one point from July to eight percent.
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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.