Hawkeye Reporter

NFIB's August jobs report reveals a continued struggle for small business owners in finding qualified candidates to fill job openings. According to the report, 40% of small business owners reported unfilled positions in August, an increase of two percentage points from July. Labor quality issues were identified as a significant challenge, with 21% of respondents citing it as their top operational concern.

"Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions," stated NFIB Chief Economist Bill Dunkelberg. "Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise."

Matt Everson, NFIB Iowa State Director, emphasized the importance of addressing this issue: "The latest NFIB Jobs Report highlights the urgent need for skilled labor in Iowa. We must work collaboratively to equip our workforce with the necessary skills to meet the demands of our small businesses, ensuring they can thrive and grow in our communities."

In August, 62% of small business owners were either hiring or attempting to hire, which is an increase of five percentage points from July. However, 56% of these employers reported difficulty finding qualified candidates. Specifically, 31% noted few qualified applicants while 25% found none at all.

Skilled worker positions saw an increase in job openings by four percentage points to 36%, whereas unskilled labor openings decreased by one point to 15%. The construction sector experienced a notable rise in job vacancies by five percentage points from July, with over half unable to fill these roles. Job vacancies were most prevalent in transportation, construction, and manufacturing sectors and least common in agriculture and finance sectors.

A net 13% of business owners plan on creating new jobs within three months—a slight decrease from July. Labor costs remained a constant concern for business owners at 9%, consistent with previous reports but below the peak level recorded in December 2021.

Compensation trends remained stable; a seasonally adjusted net 33% reported raising wages in August—the lowest since April 2021—and unchanged from July. Looking ahead, a net 20% plan wage increases over the next three months.