NFIB’s June jobs report reveals ongoing challenges for small business owners in filling job openings. The report indicates that 36% of small business owners reported unfilled positions, an increase from May.
Chief Economist Bill Dunkelberg commented on the situation: “Despite the slowing labor market, many small business owners are still looking to attract applicants and hire for their open positions.” He noted that compensation pressures remain significant as businesses compete for talent.
Michael Smith, NFIB State Director, highlighted the difficulties faced by employers: “Without the right applicants, it’s hard for Main Street employers to meet their customers’ needs, let alone think about expanding their businesses.”
The report shows that 58% of small business owners were hiring or attempting to hire in June. Of these, 86% reported few or no qualified applicants. Specifically, 25% found few qualified candidates and another 25% found none.
Openings for skilled workers remained at 30%, while those for unskilled labor stayed at 13%. Job vacancies were most prevalent in construction, manufacturing, and transportation industries and least common in finance and agriculture.
A net 13% of owners plan to create new jobs within three months. Labor quality concerns persisted as a top issue for 16% of business owners. Meanwhile, labor costs as a primary concern rose slightly to 10%.
Compensation saw a notable increase with a net 33% of owners raising pay in June. However, plans to raise compensation in the coming months dropped slightly to a net 19%.
