Labor Quality remains top operating problem
What it means: The number of small business job openings remains historically high as 35% reported job openings they could not fill in October. Thirty-Seven percent have openings for skilled workers while 18 percent have openings for unskilled labor.
Our take: Hiring continues to hinder small businesses due to lack of qualified workers. For now, the level of job openings suggests the labor market will continue to be firm, especially on Main Street.
The NFIB Jobs Report for October shows the job market remains challenging for small businesses with the labor market slowing but remaining strong. The report found that 35% (seasonally adjusted) of small business owners reported job openings they could not fill, up one point from September but remaining near the lowest reading from January 2021. Twenty percent of small business owners reported labor quality as their top operating problem, up three points from last month. A seasonally adjusted net 15% of owners plan to create new jobs in the next three months, unchanged from September.
“On Main Street, the job market remains challenging,” said NFIB Chief Economist Bill Dunkelberg. “Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
Click here to view the entire NFIB Jobs Report.