NFIB Report: Small Business Employment Remains Stable

COLUMBUS, Ohio – NFIB’s October jobs report found that 35% (seasonally adjusted) of small business owners reported job openings they could not fill in October, up 1 point from September’s lowest reading since January 2021. 

The percent of small business owners reporting labor quality as their top operating problem rose 3 points from September, to 20%.

“On Main Street, the job market remains challenging,” said Bill Dunkelberg, NFIB chief economist. “Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.” 

Although state-specific data is unavailable, Chris Ferruso, NFIB Ohio state director, said, “As Ohio’s small businesses prepare for the holiday season, the labor market remains a serious challenge for them as they work to hire and create jobs. Owners are concerned that this issue will worsen if Congress doesn’t make the Small Business Deduction permanent and avoid a massive tax hike on Main Street.”

Overall, 53% of small business owners reported hiring or trying to hire in October, down 6 points from September. Forty-six percent of owners (87% of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill. Twenty-five percent of owners reported few qualified applicants for their open positions, and 21% reported none.

Thirty-one percent have openings for skilled workers (up 1 point), and 14% have openings for unskilled labor (unchanged).

Job openings were the highest in the construction, transportation and wholesale sectors, and the lowest in the agriculture and finance sectors. However, job openings in construction were down 4 points from last month, with 49% having an open position they can’t fill.

A seasonally adjusted net 15% of owners plan to create new jobs in the next three months, unchanged from September.

Labor costs reported as the single most important problem for business owners fell 1 point, to 8%, 5 points below the highest reading of 13% reached in December 2021.

Seasonally adjusted, a net 31% of small business owners reported raising compensation in October, down 1 point from September and the lowest reading since April 2021. A net 23% (seasonally adjusted) of owners plan to raise compensation in the next three months, unchanged from September.

The full report can be viewed HERE.

Published by The Business Journal, Youngstown, Ohio.