In a recent report, small business job openings have remained elevated in August, with 40% of business owners indicating they were unable to fill positions, marking an increase of two points from July. Growing concerns about labor quality have also been highlighted, as 21% of owners identified this as their primary issue, reaching the highest level since January 2024.
Small business owners express frustration over the persistent challenge of finding qualified applicants for job openings. In August, 62% of small business owners reported actively hiring or attempting to hire, a rise of five points from the previous month. However, a significant 56% of those hiring encountered a shortage of qualified applicants, with 31% noting only a few qualified candidates and 25% reporting none at all.
The demand for skilled workers has surged, rising four points to 36%, while openings for unskilled labor have slightly decreased to 15%. The construction sector has seen a five-point increase in job openings, with 60% of firms reporting unfilled positions. The highest levels of job vacancies are concentrated in transportation, construction, and manufacturing, while agriculture and finance sectors are experiencing fewer shortages.
Looking ahead, a net 13% of business owners plan to create new job opportunities in the next three months, a slight decline of two points from July. Labor costs continue to be a primary concern for 9% of owners, remaining consistent from the previous month.
In terms of compensation, a net 33% of small business owners reported increasing wages in August, holding steady from July and representing the lowest figure since April 2021. Meanwhile, a net 20% anticipate further compensation increases in the coming three months, up two points from the prior month.
