NFIB’s February jobs report found that 38% (seasonally adjusted) of small business owners reported job openings they could not fill in February, up three points from January and the highest reading since August 2024. A seasonally adjusted net 15% of owners plan to create new jobs in the next three months, down three points from January.
“Over half of Main Street firms reported hiring or trying to hire in February, but with little success,” said Chief Economist Bill Dunkelberg. “Meanwhile, consistent compensation increases continue to put pressure on small business owners as they look for qualified workers to fill their many open positions.”
Overall, 53% of small business owners reported hiring or trying to hire in February, up one point from January. Forty-eight percent (89% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill. Twenty-seven percent of owners reported few qualified applicants for their open positions and 21% reported none.
Job openings were the highest in the retail, construction, and manufacturing sectors, and the lowest in the agriculture and finance sectors. Job openings in construction were up one point from last month, but down seven points from the prior year.
Thirty-one percent have openings for skilled workers (up two points) and 13% have openings for unskilled labor (up three points).
The percent of small business owners reporting labor quality as their top operating problem rose one point from January to 19%. Labor costs reported as the single most important problem for business owners rose three points from January to 12%, only one point below the highest reading of 13% reached in December 2021. The last time labor costs were ranked this high was February 2023.
Seasonally adjusted, a net 33% of small business owners reported raising compensation in February, unchanged from January. A net 18% (seasonally adjusted) plan to raise compensation in the next three months, down two points from January.
