The National Federation of Independent Business (NFIB) released its latest monthly Jobs Report on Jan. 10, showing that small businesses across the country continue to face difficulties in finding employees.
The report is significant because it provides a national overview of employment trends among small business owners, who are often considered a key driver of the U.S. economy. The findings highlight ongoing labor shortages and compensation trends as the year ended.
According to NFIB Chief Economist Bill Dunkelberg, “Finding qualified workers remained a major headwind for stronger job growth on Main Street in December. In the meantime, compensation increases have softened among small businesses, but remained solid as the year came to an end.”
The report found that 35% of small business owners had job openings they could not fill in December, which is down one point from November. A net 29% reported raising compensation during the month, three points lower than November and marking the lowest level since March 2021. Additionally, a net 19% of owners plan to create new jobs in the next three months, up one point from November.
Job openings were most common in transportation, construction, and manufacturing sectors, while agriculture and finance saw fewer vacancies. Notably, job openings in construction dropped by 13 points from last month and by 17 points compared to the previous year; still, 41% of construction firms reported having at least one open position they could not fill.
NFIB plans to release its latest Small Business Optimism Index on January 14. The organization has represented small and independent business owners for over eighty years through advocacy efforts at both state and national levels.
