The National Federation of Independent Business (NFIB) released its August jobs report, showing a continued decline in unfilled job openings among small businesses. According to the report, 32% of small business owners had job openings they could not fill in August, a decrease of one percentage point from July. This is the lowest level since July 2020.
Openings for skilled workers dropped by one point to 28%, while openings for unskilled labor rose by one point to 13%. The construction, manufacturing, and transportation sectors reported the highest number of job openings, whereas wholesale and finance industries saw the fewest.
Chief Economist Bill Dunkelberg stated, “While the economy appears to be doing well, small businesses are scaling back on job openings. Small business owners with job openings are still looking for qualified applicants, many citing labor quality as their single most important problem.”
NFIB State Director Michael Smith added, “For those small business owners looking to hire, finding the applicants with the right skills and experience remains a real challenge. For others, they’re paring down open positions and trying to retain their current workforce.”
In August, 21% of respondents identified labor quality as their top concern—unchanged from July—while those naming labor costs as their primary issue fell by one point to 8%.
Hiring activity also declined: 53% of owners reported hiring or attempting to hire in August, down four points from July. Of those hiring or trying to hire, 43% said they found few or no qualified applicants—a five-point drop from last month. Specifically, 26% reported few qualified candidates for open roles and 17% reported none.
Looking ahead, a seasonally adjusted net 15% of owners plan to create new jobs within three months—up one point from July and marking a third consecutive monthly increase. Compensation trends also shifted upward: a net 29% raised compensation in August (up two points), while a net 20% plan increases over the next three months (up three points). Labor costs cited as the main problem decreased slightly compared to July.
The full NFIB Jobs Report can be accessed at https://www.nfib.com/surveys/small-business-economic-trends/.
