The National Federation of Independent Business (NFIB) released its December jobs report, indicating a slight decrease in the number of small business owners who reported unfilled job openings. In December, 35% of small business owners noted they had positions they could not fill, which is a one-point drop from November.
According to NFIB Chief Economist Bill Dunkelberg, “Finding qualified workers remained a major headwind for stronger job growth on Main Street in December.” He added that while compensation increases have lessened, they remain solid as the year concluded.
Katie Burns, NFIB State Director, commented on the ongoing challenge of hiring qualified workers: “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.”
A net 24% of small business owners plan to raise compensation over the next three months. This figure has decreased by four points since November’s peak reading for the year. Labor costs continue to be a significant concern for business owners but remain steady at 11%, just below the highest recorded level of 13% in December 2021.
The percentage of small business owners identifying labor quality as their primary operational issue remains unchanged at 19%. Furthermore, a net 19% plan to create new jobs within the next three months—a slight increase from November.
Overall hiring activity among small businesses remained consistent with November figures. Fifty-five percent reported hiring or attempting to hire in December. However, finding suitable candidates continues to be problematic; forty-nine percent reported few or no qualified applicants for their open positions.
In terms of specific roles, twenty-nine percent have openings for skilled workers (a decrease by one point), and thirteen percent are looking for unskilled labor (unchanged). The transportation, construction, and manufacturing sectors reported the highest job openings. Conversely, agriculture and finance sectors had fewer vacancies. Notably, construction saw a decline in job openings by thirteen points compared to last month and seventeen points from the previous year.
