The National Federation of Independent Business (NFIB) has released its February jobs report, revealing a continued struggle for small businesses to fill job openings. According to the report, 38 percent of small business owners (seasonally adjusted) reported unfilled job openings in February, marking a 3-point increase from January and the highest level since August 2024. Additionally, a net 15 percent of owners plan to create new jobs in the next three months, a decrease of 3 percentage points from the previous month.
Eileen Kean, NFIB New Jersey Director, emphasized the impact on local businesses in the Garden State. “Many small business owners are still grappling with hiring challenges, alongside rising labor costs and New Jersey’s heavy tax and regulatory burdens,” said Kean. “These difficulties make it harder for Main Street businesses to grow and succeed, underscoring the urgent need for lawmakers to address the state’s affordability and competitiveness.”
Nationwide, 53 percent of small business owners reported hiring or attempting to hire in February, an increase of one point from January. However, 48 percent of those actively hiring reported struggling to find qualified applicants, with 27 percent saying they had few qualified candidates, and 21 percent reporting none at all.
The report found job openings were most prominent in the retail, construction, and manufacturing sectors, while the agriculture and finance sectors saw the fewest openings. In the construction sector, job openings rose slightly from January but were down significantly compared to the previous year.
Additionally, 31 percent of small business owners are seeking skilled workers (up 2 points), while 13 percent are looking for unskilled labor (up 3 points).
Concerns over labor quality and rising labor costs remain top priorities for small businesses. The percentage of owners citing labor quality as their top operational issue rose to 19 percent, up one point from January. Labor costs, reported as the most pressing business problem, increased 3 points to 12 percent, only one point below the peak seen in December 2021. The last time labor costs were this high was in February 2023.
As for compensation, a net 33 percent of small business owners reported raising wages in February, unchanged from January. Looking ahead, a net 18 percent plan to increase compensation over the next three months, down 2 points from January.
For more information, visit the full NFIB Jobs Report.
