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NFIB Jobs Report: Main Street Compensation Plans Fall As Labor Costs Grow

August 1, 2024

NFIB Jobs Report: Main Street Compensation Plans Fall As Labor Costs Grow

WASHINGTON, D.C. (Aug. 1, 2024) – NFIB’s July jobs report found a seasonally adjusted net 33% of small business owners reported raising compensation in July, down five points from last month and the lowest reading since April 2021. A net 18% (seasonally adjusted) plan to raise compensation in the next three months, down four points from June. “Fewer small business owners are planning to raise compensation in the coming months, and plans to hire remain stable,” said NFIB Chief Economist Bill Dunkelberg. “July marks the second month of net gains in employment on Main Street, and the number of firms with open positions remains exceptionally high.” The percent of small business owners reporting labor quality as their top small business operating problem was unchanged from June at 19%, although labor quality as the top problem has eased considerably over the last two quarters. Labor cost reported as the single most important problem for business owners fell two points to 9%, four points below the highest reading of 13% reached in December 2021. Thirty-eight percent (seasonally adjusted) of small business owners reported job openings they could not fill in July, up one point from June. A seasonally adjusted net 15% of owners plan to create new jobs in the next three months, unchanged for the third consecutive month. Overall, 57% of small business owners reported hiring or trying to hire in July, down three points from June. Forty-nine percent (86% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill. Twenty-nine percent of owners reported few qualified applicants for their open positions and 20% reported none. Thirty-two percent have openings for skilled workers (up one point) and 16% have openings for unskilled labor (unchanged). Job openings in construction were up four points from June and over half of them (55%) have a job opening they can’t fill. Job openings were the highest in the construction, transportation, and retail sectors, and the lowest in the agriculture and finance sectors. Click here to view the entire NFIB Jobs Report.

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