NFIB’s August jobs report found that 32% (seasonally adjusted) of small business owners reported job openings they could not fill in August, down 1 point from July.
The last time unfilled job openings fell below 32% was in July 2020 during the pandemic. Twenty-eight percent have openings for skilled workers (down 1 point), and 13% have openings for unskilled labor (up 1 point). Job openings were the highest in the construction, manufacturing, and transportation industries, and the lowest in the wholesale and finance industries.
“Despite some positive economic indicators, small businesses are scaling back on job openings,” said NFIB New Jersey State Director Eileen Kean. “For those small business owners looking to hire, finding the applicants with the right skills and experience remains a real challenge. Others are paring open positions and trying to retain their current workforce.
“Many Garden State small business owners are grappling with these hiring challenges, alongside rising labor costs and New Jersey’s heavy tax and regulatory burdens. These difficulties make it harder for Main Street businesses to grow and succeed, underscoring the urgent need for lawmakers in Trenton to address the state’s affordability and competitiveness.”
In August, 21% of small business owners cited labor quality as their single most important problem, unchanged from July. Labor costs reported as the single most important problem for business owners fell 1 point from July to 8%.
Overall, 53% of small business owners reported hiring or trying to hire in August, down 4 points from July. Forty-three percent (81% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill, down 5 points. Twenty-six percent of owners reported few qualified applicants for their open positions and 17% reported none.
Twenty-eight percent have openings for skilled workers (down 1 point) and 13% have openings for unskilled labor (up 1 point).
A seasonally adjusted net 15% of owners plan to create jobs in the next three months, up 1 point from July and the third consecutive monthly increase.
Seasonally adjusted, a net 29% of small business owners reported raising compensation in August, up 2 points from July. A net 20% (seasonally adjusted) plan to increase compensation in the next three months, up 3 points from July. Labor costs reported as the single most important problem for business owners decreased 1 point from July to 8%.
