NFIB's latest jobs report indicates ongoing challenges for small businesses in filling job vacancies, with 35% of owners reporting unfilled positions in January, consistent with December figures. The transportation, construction, and manufacturing sectors are experiencing the highest number of openings, while agriculture and finance have the fewest. Construction saw a four-point increase in job openings from the previous month but a two-point decrease compared to last year.
"Small business owners are certainly feeling hopeful about the direction of the economy," stated NFIB Chief Economist Bill Dunkelberg. "However, employment remains a top concern as Main Street owners continue to face challenges in finding qualified employees to fill their open positions."
The report also reveals that 52% of small business owners were hiring or attempting to hire in January, which is three points lower than December. Among those hiring or trying to hire, 47% reported encountering few or no qualified applicants for their open roles. Specifically, 24% reported few qualified candidates, while 23% found none.
Regarding job openings, 29% are seeking skilled workers—a figure that remains unchanged—while openings for unskilled labor decreased by three points to 10%. Additionally, a net 18% of owners plan to create new jobs within the next three months, showing a slight decline from December.
Labor quality concerns dropped by one point from December to 18%, while labor costs as a primary issue fell two points to 9%, remaining below the peak level recorded in December 2021 at 13%.
In terms of compensation adjustments, a seasonally adjusted net 33% of small business owners increased pay in January—a rise of four points since December's lowest reading since March 2021. Looking ahead, a net 20% plan further compensation increases over the next three months; this represents a four-point drop from December.
