The National Federation of Independent Business’ (NFIB) October jobs report found that 35 percent (seasonally adjusted) of small-business owners reported job openings they could not fill in October, up one point from September’s lowest reading since January 2021.
The percentage of small-business owners reporting labor quality as their top operating problem rose three points from September to 20 percent.
“On Main Street, the job market remains challenging,” NFIB Chief Economist Bill Dunkelberg said in a release. “Although the labor market appears to be softening overall, small-business owners reported little success filling their plentiful vacancies in October.”
Overall, 53 percent of small-business owners reported hiring or trying to hire in October, down six points from September. Forty-six percent (87 percent of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill. Twenty-five percent of owners reported few qualified applicants for their open positions and 21 percent reported none.
Thirty-one percent have openings for skilled workers (up one point) and 14 percent have openings for unskilled labor (unchanged).
Job openings were the highest in the construction, transportation, and wholesale sectors, and the lowest in the agriculture and finance sectors. However, job openings in construction were down four points from last month with 49 percent having an open position they can’t fill.
A seasonally adjusted net 15 percent of owners plan to create new jobs in the next three months, unchanged from September.
Labor costs reported as the single most important problem for business owners fell one point to 8 percent, five points below the highest reading of 13 percent reached in December 2021.
Seasonally adjusted, a net 31 percent of small-business owners reported raising compensation in October, down one point from September and the lowest reading since April 2021. A net 23 percent (seasonally adjusted) plan to raise compensation in the next three months, unchanged from September.