The National Federation of Independent Business (NFIB) announced on Jan. 10 that small business owners continued to face difficulties filling job openings in December, with 35% reporting positions they could not fill, a slight decrease from November. The report also found that compensation increases among small businesses softened, with a net 29% raising pay, the lowest level since March 2021.
The findings highlight ongoing challenges for small businesses seeking qualified workers and managing labor costs. These issues remain significant as lawmakers prepare to convene in Little Rock next week.
“Finding qualified workers remained a major headwind for stronger job growth on Main Street in December,” said NFIB Chief Economist Bill Dunkelberg. “In the meantime, compensation increases have softened among small businesses, but remained solid as the year came to an end.”
Although state-specific data was not available, NFIB State Director Katie Burns said, “Hiring qualified workers remains a difficult task for Main Street. Next week, as lawmakers convene here in Little Rock, they should keep these challenges in mind and work to promote greater economic opportunity for Arkansans.”
According to the report, a net 24% of owners plan to raise compensation over the next three months—a four-point drop from November’s high—and labor costs were cited by 11% of respondents as their most important problem. Labor quality was reported as the top operating problem by 19% of owners.
Job creation plans showed some improvement with a seasonally adjusted net 19% planning to create new jobs in the coming months. Overall hiring activity remained steady: 55% reported hiring or trying to hire in December, but nearly half said there were few or no qualified applicants for open positions.
Openings were highest in transportation, construction, and manufacturing sectors; construction saw notable declines compared to last month and last year. The agriculture and finance sectors had the lowest number of job openings.
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 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.
The group engages in state-level advocacy efforts aimed at advancing policies that benefit 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.
As lawmakers gather soon in Little Rock, observers will be watching how these employment trends influence legislative priorities affecting Arkansas’s small business community.
