The National Federation of Independent Business (NFIB) released its January jobs report, revealing that 35% of small business owners reported unfilled job openings, consistent with December’s figures. The transportation, construction, and manufacturing sectors saw the highest number of job vacancies, while agriculture and finance had the lowest. In construction specifically, job openings increased by four points from the previous month but decreased by two points compared to last year.
NFIB Chief Economist Bill Dunkelberg commented on the findings: “Small business owners are certainly feeling hopeful about the direction of the economy. However, employment remains a top concern as Main Street owners continue to face challenges in finding qualified employees to fill their open positions.”
Katie Burns, NFIB State Director for Arkansas, highlighted regional concerns: “Unfortunately, finding qualified applicants remains a serious obstacle for Arkansas’ small business owners. This makes it harder for Main Street to grow and meet the needs of their customers.”
The report also indicated that 52% of small business owners were hiring or attempting to hire in January, a decrease of three points from December. Among those hiring or trying to hire, 47% reported encountering few or no qualified applicants. Specifically, 24% cited few qualified candidates while 23% found none.
Regarding specific labor needs, 29% have openings for skilled workers with no change from prior data and 10% have openings for unskilled labor—a decline of three points.
Looking ahead, a net 18% of owners plan to create new jobs within three months, marking a slight decrease from December.
Labor quality as a primary operating issue was reported by 18% of small business owners—a one-point drop from December—while labor costs fell two points to 9%, remaining below the peak recorded in December 2021.
In terms of compensation trends, a seasonally adjusted net 33% raised compensation in January—an increase from December’s figures—and a net 20% plan further raises over the next quarter.
