Employee compensation and hiring numbers are on the rise among small businesses, according to the National Federation of Independent Business’s (NFIB) monthly jobs report.
Approximately 35 percent of small business owners reported increases in labor compensation, while 58 percent indicated they are hiring or trying to hire, up one point from the previous month.
“This month’s jobs report demonstrates that small business owners’ optimism is showing no signs of abating. They are increasing compensation at record levels and are continuing to hire,” NFIB President and CEO Juanita Duggan said. “Post-tax reform, concerns about taxes and regulations are taking a backseat to their worries over filling open positions and finding qualified candidates.”
However, business owners cite a lack of qualified candidates. About 83 percent of respondents said they saw few or no qualified applicants for the positions they were trying to fill. Further, 23 percent cited the difficulty of finding qualified workers as their most important business problem, up one point this past month. This number is at its highest level since 2000.
Also, 33 percent reported having job openings they could not fill in the current period, down two points. In addition, 12 percent use temporary workers, which is unchanged.
“While the small business economy is showing tremendous growth, difficulty finding qualified workers continues to be a notable issue,” NFIB Chief Economist Bill Dunkelberg said. “Temporary workers are filling some of these vacancies, but an increased availability of qualified workers would lead to more growth in employment.”