NFIB’s latest jobs report indicates a continued struggle for small business owners in filling job openings, with 36% reporting unfilled positions in June. This is an increase from May’s figures. Chief Economist Bill Dunkelberg commented on the situation, stating, “Despite the slowing labor market, many small business owners are still looking to attract applicants and hire for their open positions.” He also noted that compensation pressures remain strong as businesses compete to retain and attract talent.
Jason Espinoza, NFIB State Director, highlighted the difficulties faced by small businesses: “Small business owners are having a hard time finding the right applicants. That makes it more difficult for Main Street employers to meet their customers’ needs, let alone think about expanding their businesses.”
The report reveals that 58% of small business owners were hiring or attempting to hire in June, an increase from May. Of these owners, 86% reported few or no qualified applicants. Specifically, 25% of owners found few qualified candidates while another 25% found none at all.
Job openings remained unchanged across sectors with skilled worker positions at 30% and unskilled labor at 13%. The construction, manufacturing, and transportation industries had the highest number of job openings whereas finance and agriculture reported fewer vacancies.
Looking ahead, a net 13% of owners plan to create new jobs over the next three months. Labor quality remains a significant issue for 16% of small business owners while labor costs increased slightly as a concern for another 10%.
Compensation trends showed an upward movement with a seasonally adjusted net 33% reporting raises in June—marking the largest monthly rise since January 2020. However, only a net 19% plan further increases within the next quarter.
The full NFIB Jobs Report provides detailed insights into these trends.
