The National Federation of Independent Business (NFIB) released its October jobs report, revealing that 35% of small business owners struggle to fill job openings, marking a one-point increase from September. This is the highest rate of unfilled positions reported since January 2021, indicating ongoing difficulties in the labor market for small businesses.
Labor quality has become a significant issue, with 20% of business owners identifying it as their primary operational challenge—an increase of 3% from the previous month. “On Main Street, the job market continues to be tough,” said NFIB Chief Economist Bill Dunkelberg. “While the overall labor market seems to be softening, small business owners reported limited success in filling their numerous vacancies in October.”
While state-specific data was not included in the report, NFIB State Director Julia Hammond highlighted that small businesses across the region face significant hiring challenges, particularly in the construction and transportation sectors. “This shortage makes it hard for them to meet customer demands and grow,” she said.
Overall, 53% of small business owners reported hiring or attempting to hire in October, a decrease of six points from September. Among those actively seeking employees, 46% indicated they faced few or no qualified applicants, with 25% reporting a scarcity of qualified candidates and 21% stating they had no suitable applicants at all. The demand for skilled workers remains high, with 31% of owners having openings in this category, while 14% reported vacancies for unskilled labor.
The construction, transportation, and wholesale sectors exhibited the highest number of job openings. However, the construction sector saw a decline, with 49% of businesses unable to fill positions—down four points from last month. Despite these challenges, a seasonally adjusted net of 15% of owners plan to create new jobs in the upcoming three months, unchanged from September.
Regarding labor costs, reported as a primary concern for business owners, this figure fell one point to 8%, remaining significantly below the peak of 13% recorded in December 2021. Additionally, a seasonally adjusted net 31% of small business owners reported raising compensation in October, reflecting a slight decline from September and marking the lowest level since April 2021. A steady net 23% plan to increase compensation in the next three months, signaling ongoing efforts to attract and retain talent in a competitive labor market.
