Unfilled job openings at small businesses continued to decline in August, according to the latest report from the National Federation of Independent Business (NFIB). The data shows that 32% of small business owners reported positions they could not fill, a decrease of one percentage point from July. This is the lowest level since July 2020.
Openings for skilled workers accounted for 28% of all job vacancies, down one point, while openings for unskilled labor rose slightly to 13%. Despite fewer overall openings, small businesses continue to face difficulties finding qualified candidates.
“While the economy appears to be doing well, small businesses are scaling back on job openings,” said Chief Economist Bill Dunkelberg. “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: “Although there are fewer openings at small businesses, those employers are still looking to hire. Unfortunately, small business owners are having a lot of trouble finding the right applicants to fill their open positions.”
In August, 21% of owners cited labor quality as their top concern—a figure unchanged from July—while only 8% identified labor costs as their primary issue, down one point from the previous month.
The report also noted that just over half (53%) of owners hired or tried to hire in August, a four-point drop from July. Among those seeking new employees, 43% said they found few or no qualified applicants—down five points compared to last month. Of these employers, 26% reported few qualified candidates and 17% found none.
Job vacancies were most common in construction, manufacturing, and transportation sectors; wholesale and finance industries had the lowest levels of open positions.
Looking ahead, a seasonally adjusted net 15% of owners plan to create new jobs in the next three months—a slight increase and marking the third consecutive monthly rise. Compensation trends also moved upward: a net 29% reported raising pay in August (up two points), and a net 20% plan further increases over the next quarter (up three points).
Labor costs remained less pressing than labor quality for most respondents. The full NFIB Jobs Report is available online.
