The National Federation of Independent Business (NFIB) released its September jobs report, revealing that 34% of small business owners (seasonally adjusted) reported job openings they were unable to fill. This is a six-point drop from August, marking the lowest level of unfilled job openings since January 2021.
“Overall, the job market appears to be softening,” says NFIB Chief Economist Bill Dunkelberg. “Fewer small firms have openings they can’t fill as we head into fall. But many still report trouble finding qualified applicants and plans to increase compensation is once again on the rise.”
In September, 59% of small business owners reported hiring or attempting to hire, a three-point decrease from August. Of those, 52% (90% of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill. Specifically, 30% of owners reported few qualified applicants, while 22% reported none.
Sector-Specific Job Openings
Job openings in the construction sector saw a notable decline, down seven points from August, with 53% of businesses in the sector still unable to fill open positions. Job openings were highest in construction, transportation, and manufacturing, while the agriculture and finance sectors had the fewest job openings.
Skilled worker openings dropped by six points, with 30% of small business owners reporting they had unfilled positions. Fourteen percent of owners reported openings for unskilled labor, down by one point.
Hiring and Compensation Trends
A net 15% of small business owners plan to create new jobs within the next three months, up two points from August. Despite the challenges in finding qualified workers, businesses are continuing to adjust their compensation strategies to attract talent.
Seasonally adjusted, a net 32% of small business owners reported raising compensation in September, a slight drop of one point from August and the lowest level since April 2021. However, 23% of owners plan to raise compensation over the next three months, an increase of three points from August.
Labor Challenges
The percentage of small business owners identifying labor quality as their top business concern fell by four points to 17%. Meanwhile, labor costs remained steady, with 9% of owners citing it as their most significant issue—four points below the December 2021 high of 13%.
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