NFIB Jobs Report: Small Business Job Openings Drop to Lowest Level Since 2021
The National Federation of Independent Business (NFIB) released its September jobs report, revealing that 34% of small business owners (seasonally adjusted) reported job openings they could not fill. This is a six-point decrease from August, marking the lowest level of unfilled job vacancies since January 2021.
“Overall, the job market appears to be softening,” said NFIB Chief Economist Bill Dunkelberg. “There are few small firms that have vacancies that they can fill as we head into the fall. But many still report having problems finding qualified applicants and plans to increase compensation are on the rise again.”
In September, 59% of small business owners reported hiring or trying to hire, a three-point drop from August. Of those, 52% (90% of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill. Specifically, 30% of owners reported few qualified applicants, while 22% reported none.
Sector-Specific Job Openings
Job openings in the construction sector have fallen significantly, down seven points since August, as 53% of businesses in the sector have not been able to fill open positions. Job openings were highest in construction, transportation, and manufacturing, while agriculture and finance had the fewest job openings.
Skilled worker openings decreased by six points, and 30% of small business owners reported having unfilled positions. Fourteen percent of owners reported openings for unskilled workers, down one point.
Employment and Compensation Trends
A total of 15% of small business owners plan to create new jobs within the next three months, up two points from August. Despite the challenges of finding qualified employees, businesses continue to adjust their compensation strategies to attract talent.
Adjusted for the season, a total of 32% of small business owners reported raising compensation in September, a slight decrease of one point from August and the lowest level since April 2021. However, 23% of owners plan to increase compensation in the next three months , a three-point increase from August.
Labor Challenges
The percentage of small business owners who identify the quality of labor as the most important factor in their business decreased by four points to 17%. Meanwhile, labor costs have remained stable, with 9% of owners citing it as their most important issue—four points below December 2021’s peak of 13%.
