Many small businesses are still having trouble filling open jobs, according to a recent report from the National Federation of Independent Business.
According to the organization’s June Jobs Report, 37 percent of small businesses had an opening that they couldn’t fill during the month. That’s actually a five point decrease from May, but is still higher than usual.
This shortage of qualified candidates is impacting nearly every industry, but is especially prevalent in the construction, transportation, and retail sectors, according to the report.
NFIB Chief Economist Bill Dunkelberg said in a news release, “This summer, small business owners continue to try to hire and find qualified employees for their open positions. The number of small businesses with one or more job openings they can’t fill remains at exceptionally high levels. However, owners are raising compensation at historically high levels to attract and retain employees.”
Of the business owners who took part in the survey, 19 percent reported labor quality as their top small business problem, while 11 percent said that labor cost was their biggest issue.
And small businesses are trying various strategies to fill these openings. But a seasonally adjusted 38 percent of business owners reported raising compensation to fill these openings. And 22 percent said they plan to raise compensation over the next three months.
In this type of job market, small businesses are often left trying to balance their need for qualified candidates with increased labor costs. Some small businesses may be able to get creative to fill openings with freelancers or unique job incentives. But ultimately, raising compensation and offering quality benefits are the most impactful ways to compete in a tough job market.
Though the amount of businesses that are struggling to find quality candidates is decreasing, it’s still significantly higher than usual. This suggests that things may be headed in the right direction for businesses looking to fill job openings. But the change is unlikely to occur overnight. So businesses looking to hire in the near future should be aware that increased wages or extra creativity may be necessary to find quality candidates.
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