You are here

NFIB: Small-Business Owners Look to Raise Compensation

Labor quality, cost continue to be top problems, survey shows

WASHINGTON — According to the National Federation of Independent Business (NFIB) monthly jobs report from August, 40% (seasonally adjusted) of small-business owners reported job openings they could not fill in the current period, down two points from last month and the lowest level since February 2021. 

Seasonally adjusted, a net 36% of owners reported raising compensation in August, tying June’s reading, and marking the lowest reading since May 2021. A net 26% of owners plan to raise compensation in the next three months, up five points from July.

“More small-business owners are planning to increase compensation in the next three months as unfilled job openings slipped in August,” says Bill Dunkelberg, NFIB’s chief economist. 

“Even as openings fell on Main Street, owners are actively working to retain current employees and attract qualified applicants.”

The percentage of owners reporting labor quality as their top business operating problem remains elevated at 24%. 

Labor costs reported as the single most important problem to business owners decreased two points to 8%, five points below the highest reading of 13% reached in December 2021.

Small-business owners’ plans to fill open positions remain elevated, with a seasonally adjusted net 17% planning to create new jobs in the next months, unchanged from July but 15 points below its record-high reading of 32 reached in August 2021.

Overall, 59% of owners reported hiring or trying to hire in August, down two points from July. Of those hiring or trying to hire, 92% of owners reported few or no qualified applicants for the positions they were trying to fill, down two points from July. 

Thirty-three percent of owners reported few qualified applicants for their open positions and 21% reported none.

Thirty-five percent of small-business owners have job openings for skilled workers and 18% have openings for unskilled labor.

When asked about the overall change in employment at their firm, 12.8% reported higher and 12.4% reported lower, a fairly flat performance. 

All industries reported fewer job openings compared to July except for services (up one point) and professional services (up one point).

NFIB Small Business Owners Look to Raise Compensation in Coming Months

(Image licensed by Ingram Image)

Have a question or comment? E-mail our editor Bruce Beggs at [email protected].