WASHINGTON — The May jobs report from the National Federation of Independent Business (NFIB) found that 34% (seasonally adjusted) of small-business owners reported job openings they could not fill in May, unchanged from April, and the lowest since January 2021.
“Amid uncertainty, small-business owners’ hiring plans remain subdued in May,” says NFIB Chief Economist Bill Dunkelberg. “Compensation pressures have also eased, offering some much-needed relief for many owners.”
Overall, 55% of small-business owners reported hiring or trying to hire in May, down one point from April. Forty-eight percent (86% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill.
Thirty percent have openings for skilled workers (up one point) and 13% have openings for unskilled labor (unchanged for the fourth consecutive month).
Job openings were the highest in the construction, transportation and manufacturing sectors, and the lowest in the wholesale and professional services industries. The percentage of job openings in all industries except for wholesale has decreased from last year.
A seasonally adjusted net 12% of owners plan to create new jobs in the next three months, down one point from April.
The percentage of small-business owners reporting labor quality as their top operating problem fell three points from April to 16%. Labor costs reported as the single most important problem for business owners rose one point from April to 9%.
Seasonally adjusted, a net 26% of small-business owners reported raising compensation in May, down seven points from April, and the lowest reading since February 2021. This was the greatest monthly decline since April 2020. A net 20% (seasonally adjusted) plan to raise compensation in the next three months, up three points from April.
Have a question or comment? E-mail our editor Dave Davis at [email protected].
