NFIB's latest jobs report, released in Washington, D.C., reveals persistent challenges for small businesses in filling job openings. In March, 40% of small business owners reported job openings they could not fill, a slight increase from February. Plans for job creation in the coming months dropped to a net 12%, a decrease from 15% the previous month, now marking the lowest point since April 2024.
"With qualified workers in short supply, job openings stayed solid on Main Street in March," said Chief Economist Bill Dunkelberg. He noted that while fewer owners intend to create new positions as spring progresses, efforts continue to fill existing vacancies.
The report shows that 53% of small business owners were hiring or attempting to hire in March, consistent with February levels. However, 47% of those businesses – representing 87% of those on the hiring front – encountered a scarcity of qualified applicants, with 26% finding few qualified individuals and 21% finding none.
Openings for skilled workers increased by two points to 33%, while those for unskilled labor remained unchanged at 13%. The construction, transportation, and manufacturing sectors faced the highest demand, with job openings in construction and transportation witnessing significant rises. The construction sector saw a 10-point increase from last month. Transportation job openings experienced a steep rise from February's 30% to 53%.
In terms of operating concerns, labor quality remained the top issue for 19% of small business owners, unchanged from February, while concerns over labor costs dipped slightly to 11%. Compensation adjustments also rose in March, with 38% of owners reporting increases, up five points from February. Looking ahead, a net 19% plan to increase compensation in the coming three months, marking a slight rise.
