The National Federation of Independent Business (NFIB)’s August jobs report found that 32 percent (seasonally adjusted) of small business owners reported job openings they could not fill in August, down 1 point from July. Twenty-eight percent have openings for skilled workers (down 1 point), and 13 percent have openings for unskilled labor (up 1 point).
“While the economy appears to be doing well, small businesses are scaling back on job openings,” said chief economist for NFIB. “Small business owners with job openings are still looking for qualified applicants, many citing labor quality as their single most important problem.”
In August, 21 percent of small business owners cited labor quality as their single most important problem, unchanged from July. Overall, 53 percent of small business owners reported hiring or trying to hire in August, down 4 points from July. Forty-three percent (81 percent of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill, down 5 points. Twenty-six percent of owners reported few qualified applicants for their open positions and 17 percent reported none.
Twenty-eight percent have openings for skilled workers (down 1 point) and 13 percent have openings for unskilled labor (up 1 point). Job openings were the highest in the construction, manufacturing, and transportation industries, and the lowest in the wholesale and finance industries.
Seasonally adjusted, a net 29 percent of small business owners reported raising compensation in August, up 2 points from July. A net 20 percent (seasonally adjusted) plan to raise compensation in the next three months, up 3 points from July. Labor costs reported as the single most important problem for business owners decreased 1 point from July to 8 percent.