The latest jobs report from the National Federation of Independent Business (NFIB) indicates a weakening labor market on Main Street for May. According to the report, 34% of small business owners reported unfilled job openings, a figure unchanged from April and the lowest since January 2021.
“Amid uncertainty, small business owners’ hiring plans remain subdued in May,” stated Chief Economist Bill Dunkelberg. “Compensation pressures have also eased offering some much needed relief for many owners.”
While state-specific data was not provided, NFIB State Director Jerrod Shouse commented on the situation in Oklahoma: “Unfortunately, our members here in Oklahoma aren’t immune to the hiring challenges we’re seeing across the country. Main Street is hiring, but qualified applicants are in short supply.”
Overall, 55% of small business owners attempted to hire in May, which is a slight decrease from April. Among those hiring or attempting to hire, 48% reported few or no qualified applicants for their open positions. Specifically, 29% noted few qualified candidates and 19% reported none.
Openings for skilled workers rose slightly to 30%, while positions for unskilled labor remained constant at 13%. The highest demand for jobs was seen in construction, transportation, and manufacturing sectors; however, it was lowest in wholesale and professional services industries. Job openings have decreased across all industries except wholesale compared to last year.
A net 12% of owners plan to create new jobs within the next three months, showing a slight decline from April. The percentage of small business owners citing labor quality as their primary issue dropped three points to 16%, while those reporting labor costs as their main concern increased by one point to 9%.
In terms of compensation trends, a net 26% of small business owners raised wages in May—a significant drop from April and the lowest since February 2021. This represents the largest monthly decline since April 2020. However, looking ahead, a net 20% plan to increase compensation over the next three months.
For more detailed insights into these findings, access the full NFIB Jobs Report.
