ECNETNews reports that the National Federation of Independent Business (NFIB) has published its September jobs report, indicating that 34% of small business owners are facing unfilled job openings. This represents a six-point decrease from August and marks the lowest level of unfilled positions since January 2021.
“The job market seems to be softening,” stated NFIB Chief Economist Bill Dunkelberg. “As we enter fall, fewer small firms are experiencing unfilled openings, though many still struggle to find qualified candidates, leading to an increase in planned compensation adjustments.”
In September, 59% of small business owners reported they were hiring or attempting to hire, which is a three-point dip from August. Among these, 52%, or 90% of those hiring, noted a lack of qualified applicants, with 30% reporting few applicants and 22% reporting none at all.
Sector-Specific Job Openings
Notably, job openings in the construction sector dropped by seven points from the previous month, with 53% of businesses still unable to fill available positions. The highest job openings were recorded in construction, transportation, and manufacturing, while the agriculture and finance sectors reported the fewest.
Additionally, openings for skilled labor fell by six points, with 30% of small business owners reporting unfilled positions. Unskilled labor openings also declined slightly, with 14% of owners indicating a need for such labor.
Hiring and Compensation Trends
A net 15% of small business owners are planning to create new jobs in the next three months, reflecting a two-point increase from August. Despite the challenges of finding qualified workers, businesses are continuing to enhance their compensation strategies to attract talent.
Adjusted for seasonal trends, a net 32% of small business owners indicated raising compensation in September, which is a slight decline of one point from August and the lowest level since April 2021. Conversely, 23% of owners plan to increase compensation in the coming three months, marking a three-point rise from the previous month.
Labor Challenges
The percentage of small business owners identifying labor quality as their primary concern decreased by four points to 17%. Labor costs have remained stable, with only 9% of owners considering it as their most significant issue, which is four points lower than the December 2021 peak of 13%.
