Hawkeye Reporter

NFIB's recent jobs report reveals a slight increase in the percentage of small business owners facing challenges in filling job vacancies, with 40% citing unfilled positions in August. This represents a two-point rise from July. Labor quality issues, identified as the primary operational problem, reached 21%, the highest it has been since January.

Bill Dunkelberg, NFIB Chief Economist, emphasized the ongoing struggle for small businesses to find qualified applicants, stating, "Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions."

Matt Everson, NFIB Iowa State Director, highlighted the need for skilled labor in Iowa, saying, "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."

The report shows that 62% of small business owners engaged in hiring efforts in August, marking a five-point increase from the previous month. Fifty-six percent of these owners reported having few or no suitable candidates, with 31% finding few qualified applicants and 25% finding none at all.

Openings for skilled labor rose by four points to 36%, while openings for unskilled labor slightly declined by one point to 15%. The construction sector saw a five-point increase in job openings, with 60% reporting unfilled positions. Conversely, the agriculture and finance sectors reported the lowest levels of job vacancies.

Plans to create new jobs have decreased slightly, with a net 13% of owners indicating intentions to hire within the next three months, a two-point drop from July.

Labor costs remain a concern, holding steady at 9%, which is lower than the 13% peak recorded in December 2021. Compensation increases were reported by a net 33% of small business owners, consistent with July figures and the lowest since April 2021. Expectations for compensation rises in the upcoming three months have grown, with a net 20% planning increases, a two-point rise from July.

The full NFIB Jobs Report is available for further insights.