According to the latest report from the National Federation of Independent Business (NFIB), small businesses in March experienced a slowdown in employment activity. While job openings on Main Street are now at pre-pandemic levels, the small business labor market remains tight as owners compete to retain and recruit employees.
The NFIB Chief Economist, Bill Dunkelberg, noted that despite the slowdown in openings, 37% of all small business owners reported job openings they could not fill – the lowest reading since January 2021. In addition, labor quality was identified as the top operating problem for small business owners by 18%, up two points from February.
Compensation has also been a concern for small business owners with a net 38% reporting raising compensation, up three points from February. Looking ahead, a net 21% plan to raise compensation in the next three months – an increase of two points from February.
The report revealed that 31% of owners have job openings for skilled workers while 14% have openings for unskilled labor. Job openings were highest in transportation, construction and services sectors with construction showing a notable decrease from previous month. Almost half of small business owners in the construction sector reported having a job opening they couldn’t fill while job openings were lowest in finance and wholesale sectors.
