NFIB’s January jobs report indicates that 35% of small business owners reported unfilled job openings, consistent with December’s figures. The transportation, construction, and manufacturing sectors reported the highest number of job vacancies, while agriculture and finance had the lowest. Notably, construction job openings increased by four points from last month but decreased by two points compared to the previous year.
Bill Dunkelberg, NFIB Chief Economist, commented on the situation: “Small business owners are certainly feeling hopeful about the direction of the economy. However, employment remains a top concern as Main Street owners continue to face challenges in finding qualified employees to fill their open positions.”
NFIB State Director Dan Murray emphasized the difficulties faced by small businesses: “Unfortunately, finding qualified applicants remains a serious obstacle for small business owners. These challenges underscore the importance of making it easier for Main Street Kansans to own and operate their businesses.”
The report highlights that 52% of small business owners were hiring or attempting to hire in January, which is a three-point decrease from December. Of those trying to hire, 47% (90% of them) reported few or no qualified applicants for available positions. Specifically, 24% noted few qualified candidates and 23% found none.
Openings for skilled workers remained steady at 29%, while those for unskilled labor dropped by three points to 10%. A net 18% of owners plan to create new jobs within three months, slightly down from December.
Labor quality concerns decreased by one point from December to 18%, and labor costs as a primary issue fell two points to 9%, remaining just below its peak in December 2021. Compensation adjustments saw a net increase of four points in January with plans for further raises decreasing by four points compared to December.
