According to the National Federation of Independent Business’ monthly jobs report for May, the labor shortage continues to be a challenge for small businesses, with 51 percent (seasonally adjusted) of owners reporting job openings they could not fill in the current period, up four points from April and matching the 48-year record high set in September.
In addition, 23 percent of owners reported labor quality was their top business problem, second to inflation – while 12 percent of owners cited labor costs as their top business problem.
“The labor force participation rate is slowly rising, but small businesses continue to have a hard time filling their open positions,” said NFIB Chief Economist Bill Dunkelberg. “The number of job openings continues to exceed the number of unemployed workers, which has produced a tight labor market and added pressure on wage levels.”
Overall, 67 percent of owners reported hiring or trying to hire in May, up eight points from April. However, 92 percent of those owners hiring or trying to hire reported few or no qualified applicants for the positions they were trying to fill. Thirty-three percent of owners reported few qualified applicants for their open positions, and 28 percent reported none.
Seasonally adjusted, a net 49 percent of owners reported raising compensation, up three points from April and one point below the 48-year record high set in January. A net 25 percent of owners plan to raise compensation within the next three months.
