NFIB's latest jobs report indicates a rise in labor costs for small businesses in November. According to the report, 36% of small business owners reported unfilled job openings, an increase from October. Labor costs have become a significant concern, with 11% of business owners citing it as their primary issue, nearing the highest level recorded in December 2021.
NFIB Chief Economist Bill Dunkelberg commented on the situation: "As the overall job market softens, hiring among small businesses remains a struggle. Main Street owners continue to feel pressure to raise compensation at historically high levels to attract and retain workers."
Dan Murray, NFIB State Director, added: "Hiring new team members remains an enormous challenge for our small business owners. Qualified applicants are in short supply, forcing employers to raise wages to retain their current workforce and attract new talent."
The report shows that a net 32% of small business owners increased compensation in November, with plans for further increases over the next three months reaching their highest level this year at a net 28%. The percentage of owners identifying labor quality as their top problem decreased slightly to 19%.
A net 18% of owners plan to create new jobs soon, showing an increase from October. Overall hiring efforts were reported by 55% of small business owners, although many face challenges finding qualified candidates. Forty-eight percent reported few or no qualified applicants for open positions.
Openings for skilled workers stand at 30%, while those for unskilled labor are at 13%. The transportation, construction, and professional services sectors reported the highest job openings. In contrast, agriculture and finance sectors showed fewer vacancies. Notably, construction saw a five-point increase in job openings from last month.
