Show-Me State Times

The latest jobs report from the National Federation of Independent Business (NFIB) indicates that job openings remain a significant issue for small businesses, with 35% of owners reporting unfilled positions in January. This figure is consistent with December's numbers, showing persistent challenges in hiring across several sectors.

The transportation, construction, and manufacturing sectors reported the highest number of job openings, while agriculture and finance had the lowest. Notably, job openings in construction increased by four points from last month but decreased by two points compared to the previous year.

Bill Dunkelberg, NFIB Chief Economist, commented on the situation: “Small business owners are certainly feeling hopeful about the direction of the economy. However, employment remains a top concern as Main Street owners continue to face challenges in finding qualified employees to fill their open positions.”

State-specific data is not available; however, NFIB State Director Brad Jones highlighted ongoing issues: “When qualified applicants are in short supply, it makes it harder for our small business owners to expand their operations and meet their customers’ needs. We know that finding affordable child care remains a serious challenge for parents who would like to rejoin the workforce. We will continue working with lawmakers to expand access to child care in a way that supports employers, families, and child care providers.”

In January, 52% of small business owners were hiring or attempting to hire, which is a decrease of three points from December. Of those hiring or trying to hire, 47% reported few or no qualified applicants. Specifically, 24% mentioned few qualified candidates and 23% noted none at all.

Regarding skilled labor demands, 29% have openings for skilled workers—a figure unchanged from previous reports—while 10% have openings for unskilled laborers—a drop of three points.

Looking ahead, a seasonally adjusted net 18% of owners plan to create new jobs within the next three months—a slight decrease from December.

Labor quality as a top operating problem fell one point from December to stand at 18%. Meanwhile, labor costs as the primary concern dropped two points to 9%, still four points shy of its peak in December 2021.

Compensation trends showed an increase with a seasonally adjusted net 33% of small business owners raising compensation in January—up four points from December's lowest level since March 2021. Additionally, a net 20% plan further compensation increases over the next three months—a decline of four points since December.