The National Federation of Independent Business (NFIB) said in a recent press release that in its monthly jobs report, 42% of small business owners said they had job openings that they were unable to fill.

“The small business economy continues to struggle with the current job market, with owners working hard to fill open positions," NFIB Chief Economist Bill Dunkelberg said. "Hiring plans are trending down but are still historically strong in the face of a weakening economy.”

The proportion of small business owners citing labor quality as their primary operating issue remains high at 23%, which is down by one point from June, the press release said. Meanwhile, concern over labor costs as the most significant problem has risen by two points, reaching 10%.

Small business owners plan to create new jobs in the next three months, with a net 17% intending to do so, up by two points from June, the release said. However, this figure remains 15 points below the record high of 32 reached in August 2021. In July, 61% of owners reported hiring or trying to hire, with 92% facing challenges finding qualified applicants for the positions they sought to fill.

Seasonally adjusted, 38% of owners raised compensation (up two points from June), and 21% plan to raise it in the next three months (down one point from June). Additionally, 36% have job openings for skilled workers and 18% for unskilled labor, but labor supply and quality remain limiting factors for growth.

NFIB is the leading advocate for small business owners in the U.S., representing their interests in Washington, D.C., and all 50 state capitals, its website says. For over 75 years, NFIB has been actively involved in key small business issues, including taxes, healthcare, and regulations, the website says.