NFIB's June jobs report indicates that 36% of small business owners had job openings they could not fill, marking a two-point increase from May. Chief Economist Bill Dunkelberg commented on the situation, stating, "Despite the slowing labor market, many small business owners are still looking to attract applicants and hire for their open positions." He also noted the ongoing compensation pressures faced by businesses competing to retain and attract talent.
In June, 58% of small business owners reported hiring or attempting to hire, which is an increase of three points from May. Among these owners, 50%—equivalent to 86% of those hiring or trying to hire—reported few or no qualified applicants for their available positions. Specifically, 25% cited few qualified candidates while another 25% reported none at all.
The report highlighted that job openings were most prevalent in the construction, manufacturing, and transportation sectors. Conversely, the finance and agriculture industries experienced the lowest number of job openings.
Looking ahead, a seasonally adjusted net 13% of business owners plan to create new jobs within the next three months—a one-point rise from May figures. Meanwhile, labor quality remains a significant concern for small businesses with 16% identifying it as their primary operational issue. Labor costs were cited as the top problem by 10%, reflecting a one-point increase from May.
Regarding compensation trends, a seasonally adjusted net 33% of small business owners reported raising wages in June—the largest monthly jump since January 2020—while a net 19% anticipate increasing compensation over the next three months.
For more details on these findings, view the full NFIB Jobs Report.
