The latest NFIB Jobs Report reveals that small businesses in the United States continue to struggle to fill open positions due to a shortage of qualified candidates. According to the June report from the National Federation of Independent Business (NFIB), 58% of small-business owners reported hiring or trying to hire in June, up three points from May. However, among those owners, 50% reported few qualified applicants for their open positions, and 25% reported none — meaning a total of 75% faced difficulties finding suitable applicants.
Additionally, 36% (seasonally adjusted) of small business owners reported job openings they could not fill in June, an increase of two points from May. Job openings were most prevalent in the construction, manufacturing, and transportation industries, while finance and agriculture saw the fewest openings.
A seasonally adjusted net 33% of owners reported raising compensation in June, a seven-point increase from May and the largest monthly gain since January 2020. Meanwhile, a net 19% plan to raise compensation in the next three months, down one point from the previous month. These data highlight ongoing compensation pressures as business owners compete to attract and retain talent.
Thirty percent of owners reported openings for skilled workers (unchanged from May), and 13% had openings for unskilled labor (also unchanged for the fifth consecutive month). Labor quality remained the top operating problem for 16% of owners, while 10% cited labor costs as their most important problem, up one point from May.
A seasonally adjusted net 13% of owners plan to create new jobs in the next three months, up one point from May. Despite the slowing labor market overall, small businesses continue to seek ways to attract applicants and fill critical roles.
Industry experts suggest that the mismatch between available job skills and employer needs, along with strong competition from larger companies, continues to challenge small businesses. Many are responding by raising wages, offering more flexible work arrangements, and investing in training to address workforce gaps.
With small businesses serving as a critical backbone of the U.S. economy, addressing labor shortages and developing a skilled workforce will remain essential for supporting long-term growth and stability.