The National Federation of Independent Business reported on Feb. 6 that 35% of small business owners had job openings they could not fill in January, a figure unchanged from December. The report highlighted that the highest number of unfilled positions were in transportation, construction, and manufacturing, while agriculture and finance saw the fewest.
This issue is significant because ongoing labor shortages can limit growth and hinder the ability of small businesses to meet customer needs. “Small business owners are certainly feeling hopeful about the direction of the economy,” said NFIB Chief Economist Bill Dunkelberg. “However, employment remains a top concern as Main Street owners continue to face challenges in finding qualified employees to fill their open positions.”
NFIB State Director Katie Burns addressed local concerns by saying, “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.” According to the report, 52% of small business owners hired or tried to hire in January—down three points from December—and nearly half reported few or no qualified applicants.
Other findings showed that 29% have openings for skilled workers and 10% for unskilled labor. A net 18% plan to create new jobs over the next three months, slightly down from December. Labor quality was cited as the top operating problem by 18%, while labor costs were noted by 9%. Compensation increases were reported by a net 33% of owners in January.
The National Federation of Independent Business – Arkansas empowers small business owners to shape policy and promote economic growth in their communities according to its official website. The organization also advocates for small and independent businesses through resources, legislative updates and policy support as per its official website. It offers support across all states including dedicated services in Arkansas according to its official website.
Additionally, the group engages in state-level advocacy efforts aimed at advancing policies beneficial to small businesses according to its official website, supplies tools and research for compliance guidance as noted on its official website, and operates as an advocacy group focused on small business interests according to its official website.
Looking ahead, hiring plans among small businesses appear cautious amid ongoing recruitment difficulties.
