Show-Me State Times

NFIB's latest jobs report reveals ongoing challenges for small business owners in filling job vacancies. In June, 36% of small business owners reported having job openings they could not fill, an increase of two points from the previous month.

Chief Economist Bill Dunkelberg noted that despite a slowing labor market, many small businesses are actively seeking applicants to fill open positions. "Compensation pressures remain strong for those owners who are competing to retain and attract talent in their business," he said.

While specific data for states is unavailable, NFIB State Director Brad Jones commented on the situation in Missouri. "Our members want to create more jobs for Missourians, but the right applicants are in short supply. Main Street employers will continue to grapple with this workforce shortage while attempting to meet their customers’ needs," Jones stated.

The report highlighted that 58% of small business owners were hiring or trying to hire in June, a three-point increase from May. Among these, 50% (86% of those hiring or trying to hire) found few or no qualified applicants for the roles they were attempting to fill. Specifically, 25% reported few qualified applicants and another 25% reported none at all.

Openings were most prevalent in construction, manufacturing, and transportation sectors, whereas finance and agriculture industries saw fewer vacancies. A net 13% of owners plan to create new jobs within the next three months, marking a slight rise from May.

Labor quality remains a significant concern for 16% of small business owners as their top operating issue, consistent with last month's figures. The proportion identifying labor costs as their primary problem rose by one point to reach 10%.

In June, a seasonally adjusted net 33% of small business owners increased compensation—a seven-point rise from May and the largest monthly jump since January 2020. Looking ahead, a net 19% plan to raise compensation over the next three months, reflecting a minor decrease from May.