NFIB’s August jobs report reveals that 40% of small business owners reported job openings they could not fill in August, an increase from July. Labor quality concerns also rose, with 21% citing it as their top issue, marking the highest level since January.
“Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions,” said NFIB Chief Economist Bill Dunkelberg. “Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise.”
John Reynolds, NFIB Minnesota State Director, stated, “The latest NFIB Jobs Report makes clear that Minnesota small business owners need relief that allows them to invest in their workers and grow their operations. Minnesota is an expensive place to do business, and the wave of costly regulations, fee increases, and tax hikes from the last two years make that problem worse. Fixing the workforce shortage and helping Main Street thrive means focusing on solutions that make Minnesota a more affordable place to live, work, and do business.”
Overall hiring activity increased with 62% of small business owners attempting to hire in August. However, 56% reported few or no qualified applicants for available positions. Skilled worker openings rose by four points to 36%, while unskilled labor openings decreased slightly.
Construction sector job openings saw a notable increase, with over half remaining unfilled. The transportation, construction, and manufacturing sectors reported the highest number of job vacancies.
A net 13% of owners plan to create new jobs within three months, a slight decline from July. Labor costs remained a consistent concern for businesses at 9%.
Compensation adjustments were stagnant compared to July; however, there was a modest rise in plans for future compensation increases.
The full NFIB Jobs Report is available for further details.
