NFIB’s December jobs report indicates a slight easing in labor costs for small businesses. The report shows that 35% of small business owners had job openings they could not fill, a decrease from the previous month. Additionally, 29% reported raising compensation, marking the lowest level since March 2021.
“Finding qualified workers remained a major headwind for stronger job growth on Main Street in December,” said NFIB Chief Economist Bill Dunkelberg. He noted that while compensation increases have softened, they remained robust as the year concluded.
Dan Murray, NFIB State Director, commented on the situation: “Hiring qualified workers remains a difficult task for Main Street. Next week, as lawmakers convene here in Topeka, they should keep these challenges in mind and work to promote greater economic opportunity for Kansans.”
Looking ahead, 24% of business owners plan to raise compensation in the next three months, down from November’s peak. Labor costs were identified by 11% of owners as their most pressing issue. The quality of labor was cited by 19% as their top operational challenge.
Plans to create new jobs rose slightly to 19%. Meanwhile, hiring efforts remained consistent with November figures; however, many reported few or no qualified applicants available.
Openings for skilled workers decreased slightly to 29%, while unskilled labor positions remained steady at 13%. The transportation, construction, and manufacturing sectors experienced the highest demand for workers. Conversely, agriculture and finance sectors reported fewer job openings. Notably, construction saw a significant decline compared to both last month and last year.
