In the latest NFIB monthly jobs report released on May 2, 2024, it was revealed that small business job openings have seen a rise in April, indicating a challenging labor market environment.
According to NFIB Chief Economist Bill Dunkelberg, "Hiring plans among small businesses increased once again in April, but open positions remain largely unfilled as owners struggle month after month to find employees." This statement reflects the ongoing issue of unfilled job openings as the labor market continues to remain tight.
The report highlighted that 40% of small business owners reported job openings they could not fill in the current period, which is an increase of three points from the previous month. Additionally, the percentage of small business owners citing labor costs as their top operating problem also saw a slight increase.
Despite the increased hiring plans among small businesses, the report noted that owners are facing challenges in filling open positions, with a net 12% planning to create new jobs in the next three months. The issue of labor quality was reported as the single most important problem for business owners, showing a slight increase as well.
Among the key findings of the report, it was noted that a significant percentage of owners reported difficulty in finding qualified applicants for the positions they were trying to fill. Additionally, a large number of owners reported raising compensation, with plans to further raise compensation in the coming months.
Job openings were particularly high in sectors such as construction, transportation, and wholesale, while they were lower in sectors like agriculture and finance. The data also indicated an increase in job openings for both skilled and unskilled labor positions.
Overall, the NFIB jobs report for April underscores the ongoing challenges faced by small businesses in the current labor market landscape.
