NFIB’s latest jobs report indicates that 32% of small business owners had job openings they could not fill in August, a slight decrease from July. This marks the first time since July 2020 that unfilled job openings have dropped below 32%. Openings for skilled workers fell by one point to 28%, while those for unskilled labor rose by one point to 13%.
Chief Economist Bill Dunkelberg commented, “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.”
Jerrod Shouse, NFIB State Director, added, “Small business owners want to hire. But the right applicants are not walking through the front door, which makes filling open positions a real challenge.”
Labor quality remains a significant concern for employers; 21% cited it as their main issue in August, unchanged from July. The percentage of owners reporting labor costs as their top problem decreased by one point to 8%.
In total, 53% of small business owners reported hiring or trying to hire in August—a four-point drop from July. Of those seeking employees, 43% (81% of those hiring or trying to hire) said there were few or no qualified applicants for open positions, down five points from the previous month. Twenty-six percent reported few qualified candidates and 17% reported none.
The sectors with the highest number of job openings were construction, manufacturing, and transportation. Wholesale and finance industries reported the lowest levels of unfilled positions.
A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months—an increase for the third consecutive month. Additionally, a net 29% raised compensation in August (up two points from July), and a net 20% plan further increases within three months (up three points). Reports listing labor costs as the most important problem also declined slightly.
For more details on these trends and data breakdowns by industry sector and compensation plans among small businesses across Oklahoma and nationally, readers can view the full NFIB Jobs Report at https://www.nfib.com/surveys/small-business-economic-trends/.
