The National Federation of Independent Business (NFIB) released its November jobs report, highlighting ongoing challenges faced by small businesses in filling job openings. According to the report, 36% of small business owners reported unfilled job openings in November, a slight increase from October. Labor costs emerged as a significant concern, with 11% of business owners identifying it as their primary issue, approaching the peak level seen in December 2021.
Bill Dunkelberg, NFIB Chief Economist, 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.”
Although specific state data was not available, Jason Espinoza, NFIB State Director, noted: “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 revealed that a net 32% of small business owners increased compensation in November compared to October. Looking ahead, a net 28% plan further increases within three months—the highest figure recorded this year.
While labor quality concerns decreased slightly from October—19% of owners cited it as their main operational problem—a net 18% intend to create new jobs soon.
In November, 55% of small business owners were either hiring or attempting to hire employees—an increase from October's figures but still reflecting challenges. Among those hiring or trying to hire, 48% encountered few or no qualified candidates for available roles; specifically, 29% reported few qualified applicants and another 19% found none.
Job vacancies varied across sectors: transportation saw significant demand alongside construction and professional services; agriculture and finance experienced lower vacancy rates. Notably within construction—up five points from last month—over half (54%) had positions they could not fill.
