The National Federation of Independent Business (NFIB) released its latest monthly Jobs Report on Jan. 9, showing that small business owners across the country continue to face challenges in finding employees.
This issue is significant because it affects Main Street entrepreneurs’ ability to grow and maintain their businesses. The report provides a national overview of hiring difficulties and compensation trends among NFIB-member small businesses.
Suzanne Budge, state director for NFIB in Idaho, said, “We fortunately live in state that has been a bulwark against many of the bad economic headwinds blowing in from across the nation. That’s been due to superior state policies we have in place that foster small business survival, policies I’m glad to see Gov. Brad Little wants to build on with his calls for $100 million in additional tax relief to Idahoans, cutting government regulation and red tape, and improving the permitting process, which he outlined in his January 6 State-of-the-State address.”
According to the Jobs Report, 35% of small business owners nationally reported job openings they could not fill in December, a slight decrease from November. A net 29% reported raising compensation during December—down three points from November and marking the lowest level since March 2021. Additionally, a net 19% plan to create new jobs over the next three months. Job openings were most common in transportation, construction, and manufacturing sectors but lowest in agriculture and finance. In construction specifically, job openings dropped significantly compared to both last month and last year.
NFIB Chief Economist Bill Dunkelberg commented on these findings: “Finding qualified workers remained a major headwind for stronger job growth on Main Street in December. In the meantime, compensation increases have softened among small businesses, but remain solid as the year came to an end.”
The typical NFIB member employs about ten people with gross sales around $500,000 annually. The organization will release its latest Small Business Optimism Index on January 14.
For more than eighty years, NFIB has advocated for America’s small and independent business owners at both federal and state levels.
