Hiring plans increase among Main Street businesses
NFIB’s November jobs report found that 36% (seasonally adjusted) of small business owners reported job openings they could not fill in November, up one point from October. Labor costs reported as the single most important problem for business owners rose three points to 11%, only two points below the highest reading of 13% reached in December 2021.
“As the overall job market softens, hiring among small businesses remains a struggle,” said NFIB Chief Economist Bill Dunkelberg. “Main Street owners continue to feel pressure to raise compensation at historically high levels to attract and retain workers.”
State-specific data is unavailable, but NFIB Virginia Director Julia Hammond said, “Our unemployment rate is 2.9 percent, well below the national average. That’s great, but it also means many small businesses and other employers have positions that are going vacant, and that inevitably hurts their ability to serve their customers.”
Seasonally adjusted, a net 32% of small business owners reported raising compensation in November, up one point from October. A net 28% (seasonally adjusted) plan to raise compensation in the next three months, up five points from October and the highest reading of this year.
The percent of small business owners reporting labor quality as their top operating problem fell one point from October to 19%.
A seasonally adjusted net 18% of owners plan to create new jobs in the next three months, up three points from October.
Overall, 55% of small business owners reported hiring or trying to hire in November, up two points from October’s lowest reading since January 2021. Forty-eight percent (87% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill. Twenty-nine percent of owners reported few qualified applicants for their open positions and 19% reported none.
Thirty percent have openings for skilled workers (down one point) and 13% have openings for unskilled labor (down one point).
Job openings were the highest in the transportation, construction, and professional services sectors, and the lowest in the agriculture and finance sectors. Job openings in construction were up five points from last month and over half (54%) have an open position they can’t fill.
Click here to view the entire NFIB Jobs Report.
