Small Business Labor Struggles

A survey of small business owners shows more than half of small businesses have unfilled job openings.

The NFIB’s monthly jobs report found that the labor shortage continues to be a challenge for small businesses, with 51% reporting job openings they could not fill during May, up four points from April and matching a 48-year record high set in September. Twenty-three percent of owners reported labor quality was their top business problem, second to inflation. Twelve percent of owners cited labor costs as their top business problem.

Two-thirds of owners reported hiring or trying to hire in May, and 92% percent of those owners hiring reported few or no qualified applicants for the positions they were trying to fill. 

Meanwhile, 49% of owners reported raising compensation in May, up three points from April and one point below the 48-year record high set in January. Twenty-five percent of owners plan to raise compensation in the next three months. 

Twenty-six percent said they are also planning to create new jobs in the next three months, up six points from April and close to a 48-year record high.