About 17 percent of small business owners plan to add positions and create new jobs in the next three months, according to the National Federation of Independent Businesses (NFIB).
These December numbers are down one point from November and 15 points below its record-high reading of 32 percent reached in August 2021.
“Small business owners remain frustrated with the current labor situation,” NFIB Chief Economist Bill Dunkelberg said. “The trend in planned hiring eased slightly as labor quality and labor cost are two top issues for owners. Owners raised compensation again in December to attract and retain employees.”
In addition, 41 percent of all business owners reported job openings they could not fill in the current period, down three points from November. The share of owners with unfilled job openings continues to exceed the 49-year historical average of 23 percent. However, it is 10 percentage points below its record high of 51 percent, last reached in July.
Overall, 55 percent of owners reported hiring or trying to hire in December, down four points from November. About 35 percent of owners have openings for skilled workers, while 16 percent have openings for unskilled labor.
However, 93 percent of those trying to hire reported few or no qualified applicants for the positions they were trying to fill. About 26 percent reported few qualified applicants, while 25 percent reported none. Additionally, 23 percent of small business owners said labor quality was their top small business operating problem, up two points from November. About 8 percent reported labor costs as the single most important problem to business owners – down 1 percentage point.
Finally, 44 percent of business owners reported raising compensation, up four points from November, while 27 percent of owners plan to raise compensation in the next three months.