A Detailed Look at the NFIB’s Monthly Jobs Report
The National Federation of Independent Business (NFIB) recently released their monthly jobs report, which highlighted several trends and challenges facing small businesses across the United States. The report revealed that 44% of all property owners reported vacancies they were unable to fill in the current period, down one point from April, but still 20 points higher than the 49-year average reading. Despite this, small business owners’ plans to fill open positions remain high, with a seasonally adjusted net 19% planning to create new jobs in the next three months, up 2 points from April.
Labor Quality and Costs Remain Key Challenges
The percentage of owners who report labor quality as their number one small business operating problem remains high at 24%, according to NFIB Chief Economist Bill Dunkelberg. Additionally, 10% of owners report labor costs as their number one problem. “Small businesses have a record level of job openings today and are working hard to fill their open positions,” Dunkelberg said. While 63% of small business owners reported hiring or trying to hire in May, 89% of owners reported that there were few or no qualified applicants for the positions they were trying to fill. Thirty-one percent of owners reported few qualified applicants for their open positions and 24% reported none.
Increase in Compensation and Plans to Hire
Despite the challenges of finding qualified candidates, a net 41% of owners reported increasing compensation, up one point from April and nine points below the 49-year record set in January 2022. Additionally, a net 22% of owners plan to increase compensation in the next three months. The report revealed that 38% of owners have skilled labor openings and 20% have unskilled labor openings, but do not see enough qualified applicants.
Call for Tax Relief
NFIB State Director, Annie Spilman, stressed the importance of tax relief for small businesses facing persistent worker shortages. As small businesses owners face persistent worker shortages, “it behooves the Senate to join the House in providing significant tax relief to our job creators. With a lighter tax burden, small businesses can invest in their employees, increase wages, and expand their operations. We are asking the Legislature to lower taxes on Texans,” said Spilman.
Summary:
The NFIB’s monthly jobs report revealed several key trends and challenges facing small businesses across the United States. Despite a record level of job openings, 44% of all property owners reported vacancies they were unable to fill, with labor quality and costs remaining key challenges. However, small business owners’ plans to fill open positions remain high, and a net 41% of owners reported increasing compensation. NFIB State Director, Annie Spilman called for tax relief to help small businesses invest in their employees, increase wages, and expand their operations.
Expanding on the Topic:
The COVID-19 pandemic has drastically changed the employment landscape for small businesses, creating persistent worker shortages and new operational challenges. While the NFIB’s monthly jobs report provides valuable insights into the state of small business hiring, it is important to consider broader economic factors that could impact job growth and workforce development.
One factor that has contributed to the current labor shortage is the ongoing supply chain disruptions that have disrupted business operations across industries. The difficulty of sourcing materials and products, coupled with increased shipping costs, has made it more difficult for small businesses to operate efficiently and produce goods at competitive prices. This has put pressure on small businesses to reduce labor costs and increase prices, which could impact their ability to attract and retain skilled workers.
Another factor that could influence small business hiring is the ongoing debate around a nationwide minimum wage increase. While increasing the minimum wage could provide greater financial stability for low-wage workers, it could also increase labor costs for small businesses, potentially impacting their profitability and ability to retain employees.
To address these challenges, policymakers and business leaders must work together to find innovative solutions that support small business growth while addressing the needs of America’s workforce. This may involve targeted tax relief, subsidies for workforce development, or collaborations between employers and educational institutions to provide targeted training programs for the skills most in demand. Overall, the NFIB’s monthly jobs report highlights the need for ongoing collaboration and innovation to support small business hiring and workforce development in a rapidly changing economic landscape.
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austin, texas– According NFIB Monthly Jobs Report, 44% (seasonally adjusted) of all property owners reported vacancies they were unable to fill in the current period, down one point from April, but still 20 points higher than the 49-year average reading. The percentage of owners who report labor quality as their number one small business operating problem remains high at 24%, and 10% of owners report labor costs as their number one problem.
“The labor force participation rate remains below pre-COVID levels, contributing to a shortage of workers available to fill open positions,” he said. NFIB Chief Economist Bill Dunkelberg. “Small businesses have a record level of job openings today and are working hard to fill their open positions.”
Although state-specific data is not available, NFIB State Director, Annie Spilman saying:
“As small business owners face persistent worker shortages, it behooves the Senate to join the House in providing significant tax relief to our job creators. With a lighter tax burden, small businesses can invest in their employees, increase wages, and expand their operations. We are asking the Legislature to lower taxes on Texans.”
CLICK HERE to read the full report. The key findings are below:
Small business owners’ plans to fill open positions remain high, with a seasonally adjusted net 19% planning to create new jobs in the next three months, up 2 points from April.
Overall, 63% reported hiring or trying to hire in May. Of those hiring or trying to hire, 89% of owners reported that there were few or no qualified applicants for the positions they were trying to fill. Thirty-one percent of owners reported few qualified applicants for their open positions and 24% reported none.
Seasonally adjusted, a net 41% of owners reported increasing compensation, up one point from April and nine points below the 49-year record set in January 2022. A net 22% of owners plan to increase compensation in the next three months.
Thirty-eight percent of owners have skilled labor openings and 20% have unskilled labor openings. They just don’t see enough qualified applicants.
CLICK HERE to read the full report.
About NFIB:
For 80 years, NFIB has been the voice of small business, advocating on behalf of America’s small business owners and independents, both in Washington, DC and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, member-run organization. Since our founding in 1943, NFIB has been dedicated exclusively to small, independent businesses and remains so today. For more information please visit NFIB.com.
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