The National Federation of Independent Business (NFIB) released its August jobs report, revealing that 40% of small business owners reported job openings they could not fill, a two-point increase from July. The issue of labor quality as the top operating problem for small businesses also rose by two points to 21%, marking the highest level since January.
"Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions," said NFIB Chief Economist Bill Dunkelberg. "Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise."
In August, 62% of small business owners reported hiring or trying to hire, up five points from July. Of these, 56%—or 90% of those hiring or attempting to hire—reported few or no qualified applicants for their positions. Specifically, 31% reported few qualified applicants and 25% reported none.
The report indicated that 36% of businesses had openings for skilled workers, an increase of four points, while openings for unskilled labor decreased by one point to 15%.
Job openings in the construction sector increased by five points from July, with over half (60%) unable to fill these positions. The transportation, construction, and manufacturing sectors recorded the highest job opening rates, whereas agriculture and finance sectors had the lowest.
A seasonally adjusted net 13% of owners plan to create new jobs in the next three months, a decline of two points from July.
Labor costs remained unchanged as the most critical issue for business owners at 9%, which is four points below the peak reading of 13% reached in December 2021.
Additionally, a net 33% of small business owners reported raising compensation in August—a figure unchanged from July and the lowest since April 2021. Looking ahead, a net 20% plan to raise compensation in the next three months, an increase of two points from July.
For further details on the NFIB Jobs Report, click here.
