Peace Garden News

NFIB's August jobs report highlights that 40% of small business owners, when adjusted for seasonal variations, reported unfilled job openings. This figure has increased by two points since July. The principal operating issue of small businesses, labor quality, rose to 21%, the highest level reported since January.

"Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions," stated NFIB Chief Economist Bill Dunkelberg. "Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise."

NFIB North Dakota State Director Don Larson expressed similar concerns, stating, "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."

A total of 62% of small business owners indicated they were hiring or attempting to hire in August, marking a five-point increase from the previous month. Among these, 56% (or 90% of those engaged in hiring efforts) reported experiencing a lack of qualified candidates. Specifically, 31% of owners indicated few qualified applicants, while 25% reported none.

There was a noticeable rise in job openings for skilled workers, up by four points to 36%. However, openings for unskilled labor saw a slight decrease to 15%, down one point. Within the construction sector, job openings increased by five points since July, with 60% of businesses unable to fill these positions. The transportation, construction, and manufacturing sectors had the highest job opening rates, contrasting with the lower rates in agriculture and finance.

Net plans to create new jobs over the next three months decreased marginally by two points, registering at 13% seasonally adjusted. The labor costs as the primary concern for business owners remained steady at 9%, four points below the peak noted in December 2021.

In terms of compensation adjustments, 33% of small business owners, adjusted seasonally, reported raising compensation in August—the same as in July and the lowest since April 2021. Additionally, 20% plan, based on seasonal adjustments, to raise compensation in the upcoming three months, which is up by two points from July.