With the tight labor market showing no signs of loosening, unfilled job openings among small businesses continue to rise. In April, 40% of small business owners reported positions they could not fill, a three-point increase from March and the lowest reading since January 2021. Despite an increase in hiring plans among small businesses in the same month, many open positions remain vacant as owners struggle to find employees.
Small businesses are not seeing net gains in employment due to wage pressures and inflation contributing to a tight labor market. NFIB Chief Economist Bill Dunkelberg noted that this has led to difficulties in filling both skilled and unskilled positions. In April, 56% of owners reported hiring or attempting to hire, but 91% of them struggled to find qualified applicants. This has resulted in significant challenges for filling open positions, with 34% reporting openings for skilled workers and 18% for unskilled labor.
Despite these challenges, a net 38% of owners reported raising compensation, with 21% planning to do so in the next three months. While job openings were particularly high in certain sectors such as construction, transportation, and wholesale, they were lowest in agriculture and finance. Construction saw a significant increase in job openings, with over half of businesses reporting positions they could not fill.
