• Sun. Apr 21st, 2024

Small Business Owners Face Labor Challenges as Job Openings and Labor Costs Remain High

BySamantha Nguyen

Apr 3, 2024
Small-Business Employment Growth Slows: Report from American Drycleaner

According to the National Federation of Independent Business (NFIB), 37% of all owners reported job openings they could not fill in February, which is down two points from January and the lowest reading since January 2021. This indicates that employment activity has lessened somewhat as it becomes easier for owners to find qualified workers, but labor demand remains strong.

The percentage of small business owners reporting labor quality as their top small business operating problem decreased five points from January to 16%, the lowest reading since April 2020. NFIB Chief Economist Bill Dunkelberg mentioned that job openings among small businesses decreased in February to pre-pandemic levels, indicating that there may be some relief for small business owners who have been struggling to find workers.

Labor costs reported as the single most important problem for business owners increased one point to 11%, only two points below the highest reading of 13% reached in December 2021. Overall, 56% of owners reported hiring or trying to hire in February, up one point from January. Of those hiring or trying to hire, 91% reported few or no qualified applicants for the positions they were trying to fill, up two points from January.

Seasonally adjusted, a net 35% reported raising compensation, down four points from January and the lowest reading since May 2021. A net 19% plan to raise compensation in the next three months, down seven points from January and the lowest since March 2021. The report also mentions that 32% have openings for skilled workers, an increase of two points, and 12% have openings for unskilled labor, a decrease of three points.

In terms of job openings in different sectors

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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