Small business owners across the United States continue to report challenges in finding qualified workers, with labor quality remaining one of the most pressing issues. According to the NFIB June 2025 Jobs Report, 16% of small business owners identified labor quality as their single most important problem, a figure that has remained unchanged since May.
The report found that 36% of owners had job openings they couldn’t fill, an increase of 2 points from the previous month. The issue is especially acute in industries like construction, where 53% of firms reported unfilled positions, as well as in manufacturing and transportation.
Hiring remains difficult. Of those who were hiring or trying to hire in June, 86% reported receiving few or no qualified applicants. Specifically, 25% of owners said they had no qualified applicants at all, a 6-point jump from the previous month. Another 25% reported few qualified applicants.
In response to these conditions, a net 33% of small business owners raised compensation, marking the largest monthly increase in wages since January 2020. Still, job creation plans remained weak, with a net 13% of owners planning to add new jobs in the next three months.
The labor market overall appears to be slowing, with tight conditions now concentrated in specific sectors. Despite these pressures, small business owners are continuing to navigate a difficult hiring environment while trying to remain competitive in attracting talent.