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Wednesday, September 10, 2025

Small businesses face hiring challenges as job openings remain high

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Jessica Henrichs Senior Media Manager – Southwest | Official Website

Jessica Henrichs Senior Media Manager – Southwest | Official Website

NFIB's latest jobs report reveals that the labor market for small businesses remained weak in May. According to the report, 34% of small business owners reported unfilled job openings, consistent with April and marking the lowest level since January 2021.

Chief Economist Bill Dunkelberg commented on the situation, stating, "Amid uncertainty, small business owners’ hiring plans remain subdued in May." He noted that compensation pressures have eased, providing relief for many business owners.

While specific state data was not available, NFIB State Director Brad Jones highlighted ongoing challenges faced by Main Street businesses. "The lack of qualified applicants remains an ongoing challenge," he said. "Our members say they’re ready to hire, but the right applicant hasn’t walked in the door yet."

In May, 55% of small business owners reported hiring or attempting to hire, a slight decrease from April. Among those trying to fill positions, 48% encountered few or no qualified candidates. Specifically, 29% reported few qualified applicants and 19% found none.

Openings for skilled workers increased slightly to 30%, while unskilled labor positions remained unchanged at 13%. The construction, transportation, and manufacturing sectors had the highest job openings; meanwhile, wholesale and professional services saw fewer vacancies.

A net 12% of owners plan to create new jobs over the next three months—a minor decline from April. Additionally, concerns about labor quality as a primary operational issue dropped three points to 16%, whereas labor costs rose one point to become a concern for 9% of business owners.

Compensation trends showed a seasonally adjusted net of 26% reporting raised wages in May—a significant drop from April—and marking the largest monthly decline since April 2020. Looking ahead, a net of 20% plan to increase compensation within three months.

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