Graham Personnel News

Labor Quality Continues to Hold Back Small Business Hiring

National Federation of Independent Business (04/06/23)

Small business owners reporting labor quality as their top small business operating problem remains elevated at 23%, according to the National Federation of Independent Business. Labor costs reported as the single most important problem decreased one point to 11%, just two points below the highest reading of 13% reached in December 2021. The labor force participation rate remains below pre-Covid-19 levels, which is contributing to the shortage of workers available to fill open jobs. Forty-three percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, down four points from February. Thirty-four percent of owners have openings for skilled workers and 19% have openings for unskilled labor.

Small business owners’ plans to fill open jobs continued to ease, with a seasonally adjusted net 15% planning to create new jobs in the next three months, down two points from February and well below the recent peak of 23% reached last September. While large businesses shed workers, small business owners have reported some hiring success in the last four months, with more firms reporting increased employment than reductions. Overall, 59% reported hiring or trying to hire in March, down one point from last month. Of those hiring or trying to hire, 90% of owners reported few or no qualified applicants for the jobs they were trying to fill. Twenty-six percent of owners reported few qualified applicants for their open jobs and 27% reported none. Seasonally adjusted, a net 42% of owners reported raising compensation, down four points from February. A net 22% plan to raise compensation in the next three months.

This article originally appeared on nfib.com. Use this link to see the full article: NFIB Jobs Report: Labor Quality Continues to Hold Back Small Business Hiring

Share it
Facebook
X
LinkedIn
Email

Related Posts

Source: Scott Cohn, CNBC (07/10/25) North Carolina has once again been named America’s Top State...

Source: SIA Editorial Staff (07/01/25) In May 2025, US job openings surged unexpectedly by 374,000...

Source: Conference Board News Release (06/17/25) The U.S. needs to add 4.6 million workers every...

We're currently experiencing high call volumes. For quicker response, please text us at 336-288-9330 and our team will be happy to assist you.

Download our "GPS Jobs" app to browse open jobs, get new job alerts, complete onboarding, view paystubs, and more! Available for iOS and Android.