NFIB's latest report on small business employment trends for April indicates that 34% (seasonally adjusted) of small business owners reported difficulties filling job openings, a decrease of six points from March and the lowest level since January 2021.
Commenting on the findings, Chief Economist Bill Dunkelberg stated, "Small business owners remained open to hire and grow their workforce in April. While the percent of open positions decreased a bit, Main Street firms are still struggling to find qualified applicants for their plentiful open positions."
In April, 56% of small business owners either hired or attempted to hire, marking a three-point increase from March. Among these, 47% (85% of those hiring or trying to hire) claimed that there were few or no qualified candidates for the roles they aimed to fill. Specifically, 28% cited a scarcity of qualified applicants, and 19% reported none.
Openings for skilled workers were reported by 29% of business owners, a decrease of four points, while demand for unskilled labor remained constant at 13% for the third straight month.
Job openings were most prevalent in the construction, transportation, and manufacturing sectors, with a notable 16-point increase in the wholesale industry, reaching 36%.
Looking forward, a net 13% of small business owners are planning to create new jobs in the coming three months, a slight increase of one point from March.
Labor quality remains a persistent challenge, cited as the top operational obstacle by 19% of small business owners, unchanged from March. Regarding labor costs, only 8% of owners considered it their most significant issue, down three points from March.
Compensation adjustments also saw changes, with a seasonally adjusted net of 33% of small business owners raising compensation in April, a decrease of five points from March. Additionally, a net 17% are planning to increase compensation in the next three months, a reduction of two points from March, marking the lowest level since March 2021.
For more details, the complete NFIB Jobs Report is available for viewing.
