Small Business Owners Struggle to Fill Job Openings Amid Labor Shortage
The National Federation of Independent Business (NFIB) released its monthly jobs report, revealing that 37% of small business owners reported job openings they could not fill in the current period. This is a decrease from January and the lowest reading since January 2021. Despite efforts to hire, many small businesses are struggling to find qualified workers.
Labor quality was once again identified as the top small business operating problem for 16% of owners, the lowest since April 2020. As employment activity slows down, owners are finding it easier to locate qualified workers. However, plans to fill open positions have slowed down as well. A net 12% of owners plan to create new jobs in the next three months, which is the lowest level since May 2020.
The report also highlighted that labor costs are a growing concern for business owners, with 11% reporting it as their single most important problem. Despite this, 56% of owners reported hiring or trying to hire in February. However, 91% of those trying to hire reported few or no qualified applicants for the positions they were attempting to fill.
In terms of compensation, a net 35% of owners reported raising it, which is the lowest reading since May 2021. Looking ahead, a net 19% plan to raise compensation in the next three months, indicating a slight decline. The report also showed that 32% of owners have openings for skilled workers while only 12% have openings for unskilled labor.
Job openings were highest in the construction, transportation and wholesale sectors with over half of construction businesses reporting a job opening they couldn’t fill. On the other hand
