In September, 32% 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 is unchanged from August and marks a continued trend since July 2020, when unfilled job openings last fell below this level. The data also show that 28% of owners had openings for skilled workers and 13% for unskilled labor, both figures remaining steady compared to the previous month.
Bill Dunkelberg, NFIB Chief Economist, stated: “Main Street job openings remain above their historical average, with owners reporting few qualified applicants. While a recession appears unlikely, small business owners continue to experience economic uncertainty as many owners continue to grapple with labor imbalances.”
Michael Smith, NFIB State Director, commented on hiring challenges: “Our members want to hire, but they are having a hard time finding qualified applicants. That’s contributing to some uncertainty on Main Street.”
The report notes that a seasonally adjusted net 16% of small business owners plan to create new jobs in the next three months. This is an increase of one point from August and represents the fourth consecutive monthly rise in hiring plans—the highest level seen since January.
Hiring activity also increased in September. Fifty-eight percent of small business owners reported hiring or trying to hire during the month—a five-point increase over August. Of those seeking employees, 88% said they found few or no qualified applicants for open positions. Specifically, 29% cited few qualified candidates while 21% reported none at all.
Labor quality remains a concern for many businesses; however, only 18% identified it as their single most important problem in September—a decrease of three points from August. Conversely, concerns about labor costs rose by three points over the same period, with 11% now citing it as their top issue.
Compensation trends showed that a seasonally adjusted net 31% of small business owners raised pay in September—an increase of two points from August. Looking ahead, a net 19% plan to raise compensation within the next three months; this is down one point compared to last month.
For more details on these findings and additional information from NFIB’s survey results, visit the full NFIB Jobs Report.
