NFIB's latest jobs report reveals that 34% of small business owners had unfilled job openings in May, a figure unchanged from April and the lowest since January 2021. Chief Economist Bill Dunkelberg noted, "Amid uncertainty, small business owners’ hiring plans remain subdued in May." He added that compensation pressures have eased, providing relief for many.
In May, 55% of small business owners reported hiring or attempting to hire, a slight decrease from April. Of those hiring or trying to hire, 48% reported few or no qualified applicants. Specifically, 29% cited few qualified candidates and 19% found none.
Openings for skilled workers rose slightly to 30%, while openings for unskilled labor remained steady at 13%. The construction, transportation, and manufacturing sectors reported the highest job openings. In contrast, the wholesale and professional services industries saw the lowest.
A net 12% of owners plan to create new jobs in the next three months, a minor drop from April. The percentage of owners citing labor quality as their top issue decreased by three points to 16%, while those identifying labor costs as their main problem increased by one point to 9%.
Compensation adjustments also saw changes; a net 26% raised compensation in May—down seven points from April—and this marked the most significant monthly decline since April 2020. Looking ahead, a net 20% plan to increase compensation over the next three months.
