According to the latest NFIB Jobs Report, small business job openings remained high in August, with 40{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} of business owners reporting positions they could not fill, up two points from July. Labor quality concerns also grew, with 21{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} of owners citing it as their top issue, the highest level reported since January 2024.
“Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions,” said NFIB Chief Economist Bill Dunkelberg.
In August, 62{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} of small business owners reported hiring or trying to hire, an increase of five points from July. However, 56{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} of those hiring reported few or no qualified applicants for open positions, with 31{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} seeing few qualified candidates and 25{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} seeing none.
Openings for skilled workers rose by four points to 36{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b}, while openings for unskilled labor decreased by one point to 15{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b}. Job openings in construction were up five points from July, with 60{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} of construction firms reporting unfilled positions. The highest number of job openings were seen in transportation, construction, and manufacturing, with agriculture and finance sectors experiencing fewer shortages.
A net 13{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} of business owners plan to create new jobs in the next three months, down two points from July. Labor costs remained the top issue for 9{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} of owners, unchanged from the previous month.
A net 33{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} of small business owners reported raising compensation in August, unchanged from July and the lowest reading since April 2021. A net 20{44f8fb62c767d9a0e024bd2a609adf80ac0b081e02fd95d47dd066fb0a89173b} plan to raise compensation in the next three months, up two points from July.
