Show-Me State Times

NFIB’s July jobs report indicates that 33% of small business owners had job openings they could not fill, a decrease of three points from June and the lowest percentage since December 2020. Despite this drop, the figure remains above the historical monthly average of 25%. The report also notes that 21% of small business owners identified labor quality as their main concern in July, an increase of five points from June and the largest monthly rise since August 2022.

Chief Economist Bill Dunkelberg commented on the findings: “The challenge of finding qualified workers is easing overall but still remained significant for many small business owners in July. The easing labor market pressures are also reflected in fewer firms raising compensation.”

While specific data for Missouri was not available, NFIB State Director Brad Jones addressed local conditions: “We know our members want to hire. But they are not finding the right applicants. That puts more pressure on the small business owner and their current employees.”

According to the report, 57% of small business owners were hiring or trying to hire in July, a slight decline from June. Of those attempting to fill positions, 48% reported few or no qualified applicants—down two points from last month. Among all respondents, 29% said there were few qualified candidates for open roles and 19% said there were none.

Openings for skilled workers stood at 29%, while openings for unskilled labor were at 12%, both down one point from June. Job vacancies were most common in construction, wholesale, and transportation sectors and least common in finance and agriculture.

Looking ahead, a seasonally adjusted net 14% of owners plan to create new jobs within three months—a figure that is one point higher than June and exceeds the historical average of net 11%.

In terms of compensation trends, a net 27% reported raising pay in July (down six points), while a net 17% plan increases over the next three months (down two points). Only nine percent cited labor costs as their top problem—a decrease from June.

For further details or access to the full report, visit the entire NFIB Jobs Report.