According to the latest NFIB Jobs report, small business job openings remained high in August, as 40% of business owners reported positions they could not fill, a two-point increase from July. The level of concern about labor quality has also grown, with 21% of owners citing it as their top issue, the highest level reported since January 2024.
“Job openings on Main Street remain at historic highs as small business owners continue to lament the lack of qualified applicants for their open positions,” said NFIB Chief Economist Bill Dunkelberg.
In August, 62% of small business owners reported hiring or trying to hire, a five-point increase from July. However, 56% of recruiters reported few or no applicants for open positions, while 31% saw few qualified candidates and 25% saw none.
Skilled labor openings increased by four points to 36%, while unskilled labor openings decreased by one point to 15%. Construction job openings are up five points since July, with 60% of construction firms reporting unfilled positions. The highest number of job openings were seen in transportation, construction, and manufacturing, while the agriculture and financial sectors suffered from shortages.
A total of 13% of business owners plan to create new jobs in the next three months, down two points from July. Labor costs remained the top issue for 9% of owners, unchanged from last month.
A total of 33% of small business owners reported raising compensation in August, unchanged from July and the lowest reading since April 2021. A total of 20% plan to increase compensation over the next three months, up two points from July.
