LITTLE ROCK – According to the National Federation of Independent Business (NFIB) June jobs report, 36% of small business owners reported job openings they could not fill, marking a two-point increase from May.
Chief Economist Bill Dunkelberg commented on the findings: “Despite the slowing labor market, many small business owners are still looking to attract applicants and hire for their open positions.” He added that “compensation pressures remain strong for those owners who are competing to retain and attract talent in their business.”
The report also indicated that 58% of small business owners were hiring or attempting to hire in June, an increase of three points from the previous month. Of these, 86% reported few or no qualified applicants for the positions available. Specifically, 25% reported few qualified candidates while another 25% found none.
In terms of specific sectors, job openings were most prevalent in construction, manufacturing, and transportation industries. Conversely, the finance and agriculture sectors had fewer job openings.
Looking ahead, a seasonally adjusted net 13% of business owners plan to create new jobs over the next three months, showing a slight increase from May.
Labor quality remains a significant concern with 16% of small business owners citing it as their top operating problem—unchanged from May. Meanwhile, labor costs have become increasingly important with reports indicating it as the single most critical issue rising by one point to reach 10%.
In response to these challenges, a net 33% of small businesses raised compensation in June—a seven-point rise since May and the largest monthly increase since January 2020. However, plans to further raise compensation in the next three months decreased slightly by one point to a net 19%.
