Small business job openings reach lowest level since 2021
NFIB’s September jobs report found that 34% (seasonally adjusted) of small business owners reported job openings they could not fill in September, down 6 points from August and the lowest reading since January 2021.
“Overall, the job market appears to be softening,” said 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.”
“The softening job market reflected in NFIB’s report is a mixed bag for Minnesota’s small businesses,” said NFIB Minnesota State Director John Reynolds. “On one hand, it may ease hiring challenges, but on the other, it could indicate a cooling economy. We’re particularly interested in how this might affect sectors that rely on skilled labor, including construction and manufacturing.”
Overall, 59% of small business owners reported hiring or trying to hire in September, down three points from August. Fifty-two percent (including 90% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill. Thirty percent of owners reported few qualified applicants for their open positions and 22% reported none.
Thirty percent have openings for skilled workers (down six points) and 14% have openings for unskilled labor (down one point).
Job openings in construction were down seven points from August and about half of them (53%) have a job opening they can’t fill. Job openings were the highest in the construction, transportation, and manufacturing sectors, and the lowest in the agriculture and finance sectors.
A seasonally adjusted net 15% of owners plan to create new jobs in the next three months, up two points from August.
The percent of small business owners reporting labor quality as their top small business operating problem fell four points from August to 17%. Labor costs reported as the single most important problem for business owners was unchanged at 9%, four points below the highest reading of 13% reached in December 2021.
Seasonally adjusted, a net 32% of small business owners reported raising compensation in September, down one point from August and the lowest reading since April 2021. A net 23% (seasonally adjusted) plan to raise compensation in the next three months, up three points from August.
Click here to view the entire NFIB Jobs Report.
