NFIB’s August jobs report indicates a persistent challenge for small business owners, with 40% reporting unfilled job openings in August, an increase from July. The issue of labor quality has risen to 21%, marking the highest level since January.
Bill Dunkelberg, NFIB Chief Economist, commented on the situation: “Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions.” He noted that efforts to fill these roles have been hindered by rising cost pressures.
Don Larson, NFIB North Dakota State Director, highlighted the regional impact: “The NFIB Jobs Report reveals small businesses in North Dakota are struggling with a lack of qualified workers. It’s vital that we continue to invest in workforce training and development initiatives to prepare our residents for these opportunities, ensuring our economy continues to thrive.”
The report shows that 62% of small business owners were hiring or attempting to hire in August, a five-point increase from July. Of those hiring or trying to hire, 56% reported few or no qualified applicants. Specifically, 31% encountered few qualified candidates while 25% found none.
Openings for skilled workers rose by four points to 36%, whereas openings for unskilled labor decreased slightly by one point to 15%. The construction sector saw a five-point rise in job openings from July; over half (60%) could not be filled. Job vacancies were most prevalent in transportation, construction, and manufacturing sectors but least common in agriculture and finance.
A net 13% of owners plan new job creation within three months, which is down two points from July. Labor costs remained unchanged as the primary concern at 9%, below the peak reading of December 2021.
Compensation adjustments were stable with a net 33% reporting raises in August—unchanged from July and the lowest since April 2021. A net 20% plan compensation increases within three months—a slight rise from July.
