Small business owners in the United States reported fewer unfilled job openings in July, according to the latest jobs report from the National Federation of Independent Business (NFIB). The survey found that 33% of small business owners had positions they could not fill, a decrease of three percentage points from June and the lowest level since December 2020. Despite this decline, the figure remains above the historical average of 25%.
Labor quality continues to be a concern for many employers. In July, 21% of small business owners identified labor quality as their most significant problem, marking a five-point increase from June and representing the largest monthly rise since August 2022.
“The challenge of finding qualified workers is easing overall but still remained significant for many small business owners in July,” said Chief Economist Bill Dunkelberg. “The easing labor market pressures are also reflected in fewer firms raising compensation.”
While specific data for New Mexico was not available, NFIB State Director Jason Espinoza commented on local conditions: “Unfortunately, the right applicants are not walking in the door of our small businesses. That adds pressure to employers and employees as they try to meet their customers’ needs.”
The report showed that 57% of small business owners were hiring or attempting to hire in July, a slight decrease from June. Of those hiring or trying to hire, 84% reported few or no qualified applicants for open positions—down two points from last month. Among all respondents, 29% said there were few qualified candidates and 19% reported none at all.
Openings for skilled workers accounted for 29%, while unskilled labor openings made up 12%, both down one point compared to June.
The construction, wholesale, and transportation sectors had the highest rates of job openings; finance and agriculture had the lowest.
Looking ahead, a seasonally adjusted net 14% of owners plan to create new jobs over the next three months—one point higher than June and above the long-term average.
Compensation trends also shifted. A net 27% of owners increased pay in July (seasonally adjusted), six points lower than June’s figures. Meanwhile, a net 17% plan wage increases over the next three months—a drop of two points from last month. Labor costs as a top concern decreased slightly by one point to reach nine percent.
For more details on these findings and additional data from NFIB’s latest survey results, readers can access the full NFIB Jobs Report.
