In December, 33% of small business owners reported having job openings they could not fill, according to the latest National Federation of Independent Business (NFIB) jobs report. This figure remains unchanged from November and continues to be higher than the historical average of 24%. The report also shows that 28% of owners had openings for skilled workers, a slight increase from the previous month, while 10% reported openings for unskilled labor, which is a decrease.
Bill Dunkelberg, NFIB Chief Economist, commented on the findings: “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.”
Michael Smith, NFIB State Director for Colorado, addressed local concerns: “Unfortunately, Colorado small business owners are struggling to fill open positions. When state lawmakers gavel into session next week, they should resist proposals that undermine the Labor Peace Act or create more onerous red tape for employers. These policies only stand to make it more difficult for Main Street Coloradans to operate their businesses and create good-paying jobs.”
The survey found that a seasonally adjusted net 17% of owners plan to create new jobs in the next three months. This is down by two percentage points compared to November. In total, 53% of owners said they were hiring or trying to hire in December—a drop from November’s numbers.
Of those hiring or attempting to hire, 48% reported few or no qualified applicants for open positions. This represents a slight decrease from the previous month. Among these respondents, 25% said there were few qualified applicants (down five points), and 23% said there were none (up three points).
Labor quality was cited as the most important problem by 19% of small business owners in December—two points lower than in November. Meanwhile, labor costs rose slightly as a concern among owners.
A net 31% of small business owners reported raising compensation last month—an increase from November—and a net 24% plan further increases over the next three months.
For more details on these findings and additional data from NFIB’s monthly survey, readers can view the full report at https://www.nfib.com/surveys/small-business-economic-trends/.
