Centennial State News

The latest jobs report from the National Federation of Independent Business (NFIB) indicates a slight easing in labor costs for small businesses as 35% of owners reported unfilled job openings in December, a minor decrease from November. A net 29% of small business owners increased compensation, marking a three-point drop and the lowest level since March 2021.

Bill Dunkelberg, NFIB Chief Economist, commented on the findings: “Finding qualified workers remained a major headwind for stronger job growth on Main Street in December. In the meantime, compensation increases have softened among small businesses but remained solid as the year came to an end.”

Michael Smith, NFIB State Director, highlighted ongoing challenges: “Hiring qualified workers remains a difficult task for Main Street. As lawmakers consider and debate labor policy proposals, they should keep these challenges in mind and work to promote greater economic opportunity for Coloradans.”

Looking ahead, 24% of small business owners plan to raise compensation within the next three months, reflecting a four-point decline from November's peak this year. Labor costs remain a significant concern for business owners at 11%, consistent with November's figures and slightly below the peak of 13% recorded in December 2021.

Labor quality issues persist as well; 19% of small business owners identified it as their primary operational challenge. Plans to create new jobs saw a modest increase with a net 19% intending to hire over the next quarter.

Overall hiring activity remained steady with 55% of owners either hiring or attempting to hire in December. Of those seeking employees, nearly half encountered few or no qualified applicants. Specifically, skilled worker positions saw demand dip slightly by one point to 29%, while openings for unskilled labor held steady at 13%.

Sector-specific data revealed that transportation, construction, and manufacturing had the highest job openings while agriculture and finance experienced fewer vacancies. Notably, construction job openings fell significantly by both monthly and annual comparisons.

For further details on these findings, readers are encouraged to view the full NFIB Jobs Report.