In December, 33% of small business owners reported having job openings they could not fill, according to the latest jobs report from the National Federation of Independent Business (NFIB). This figure remains unchanged from November and is still above the historical average of 24%. Openings for skilled workers increased by two percentage points to 28%, while openings for unskilled labor dropped by two points to 10%.
Bill Dunkelberg, NFIB Chief Economist, stated, “The economic climate continues to support the small business labor market. Although employment conditions vary, fewer owners report labor as their biggest challenge while compensation pressures are escalating.”
Jeff Burdett, NFIB State Director in Texas, commented on local hiring issues: “Unfortunately, Texas small business owners are not immune to the hiring challenges we see across the country. Our members have the positions; they just need qualified applicants.”
The report also showed that a seasonally adjusted net 17% of owners plan to create new jobs in the next three months, which is a decrease of two percentage points compared to November.
Overall hiring activity slowed slightly with 53% of owners reporting that they were hiring or trying to hire in December—down three points from November. Of those seeking employees, 91% said there were few or no qualified applicants for open positions. Twenty-five percent noted there were few qualified applicants (a decrease of five points), and 23% said there were none (an increase of three points).
Nineteen percent cited labor quality as their most significant problem—a decline of two percentage points—while nine percent identified labor costs as their top concern, up one point from November.
Regarding wages, a seasonally adjusted net 31% reported raising compensation in December—five points higher than in November—and a net 24% plan further increases over the next three months.
The full NFIB Jobs Report can be accessed online.
