Show-Me State Times

In September, 32% of small business owners reported job openings they could not fill, according to the latest jobs report from the National Federation of Independent Business (NFIB). This figure remains unchanged from August and marks a continued trend, as unfilled job openings have not dropped below this level since July 2020. Openings for skilled workers held steady at 28%, while those for unskilled labor also remained unchanged at 13%.

Bill Dunkelberg, NFIB Chief Economist, stated, “Main Street job openings remain above their historical average, with owners reporting few qualified applicants. While a recession appears unlikely, small business owners continue to experience economic uncertainty as many owners continue to grapple with labor imbalances.”

Brad Jones, NFIB State Director, commented on the ongoing hiring challenges: “Our members want to hire. But qualified applicants are in short supply. That’s contributing to some uncertainty within the small business community.”

The report also shows that a seasonally adjusted net 16% of owners plan to create new jobs in the next three months, which is up one point from August and represents the fourth consecutive monthly increase. This is the highest level for hiring plans since January.

Hiring activity increased overall in September, with 58% of small business owners reporting they were hiring or trying to hire—an increase of five points from August. Among those seeking employees, half said there were few or no qualified applicants for open positions—a rise of seven points compared to the previous month. Specifically, 29% reported few qualified applicants and 21% reported none.

Labor quality was cited by 18% of respondents as their most important problem in September, down three points from August. Meanwhile, concerns about labor costs rose by three points to reach 11%.

A net 31% of small business owners reported raising compensation in September (seasonally adjusted), up two points from August. Looking ahead, a net 19% plan to raise compensation over the next three months—a slight decrease from last month.

For more details on these findings and additional data from the survey period, readers can access the full NFIB Jobs Report through this link: Click here to view the entire NFIB Jobs Report.